We areTHE RESISTANCE.
Click to see
Obama countdown
Tuesday, October 18, 2011
Auto Bailout Part II
If nothing else give Obama credit for brass. In his much talked about and much dissed jobs bill is a second bailout out for General Motors and Chrysler. In the revenue part of the bill-revenue being a liberal euphemism for tax- is a proposed “financial crisis responsibility fee”. This fee of a "unspecified amount" would be levied on all financial firms such as banks, insurance companies and brokerage houses worth $50 billion or more whether they took TARP money or not and would be in effect until all TARP monies were repaid. In the fine print the bill stipulates that companies that have not repaid their TARP loans will not be charged a “financial crisis responsibility fee” Those firms are GM and Chrysler. So here's the deal. Everybody but Chrysler and GM pays to repay the auto makers' loans.
Subscribe to:
Post Comments (Atom)
I have a friend who worked for Fifth and Third Bank at the time of TARP. Though they were solvent and needed no bailout, they were FORCED by the government to take money. In essence, it's not real money because it was just an electronic transfer into the bank's account. But the government considered it real money and every bank had to repay it. I read that CEOs of organizations were called into a room and told, "You WILL take this money!"
ReplyDeleteSo why did they do that? Can't say I understand this. I don't buy things I can't afford and I always pay my bills.
Chicagoland. We're from the government and we're here to help you. Nice business you got there.
That was Bush's Henry Paulson's doings. They didn't want to stigmatize the weak banks so everyone had to take it. A local bank here that wouldn't lend you the price of a cup of coffee without collateral had to take TARP.
ReplyDelete