More and more banks have decided to reject the intial bailout offer. The banks that did accept the bailout used it to help pay bonuses to their executives, resulting in predictable, if Captain Renault-esque, outrage from President Obama. (Really, what did he think? He voted to give them $300 billion. What did he think they’d do with it? Make paper hats?)
Biden, as usual, makes the dumbest comment,
I’d like to throw these guys in the brig,” he said. “They’re thinking the same old thing that got us here, greed. They’re thinking, ‘Take care of me.’
Well, I wonder why they think that? Let me get this straight… Biden voted to give the banks $700 billion dollars, no strings attached, and is campaigning for an additional $900 billion and he says that someone else is greedy? He gave them the money and now he wants to put them in prison for accepting it.
Local banks are rejecting TARP money because, well because it only makes sense to spend the money on bonuses and corporate jets. Using it to make more bad loans is stupid.
Congress wants banks to make loans, so businesses can expand and people can start buying houses again. But lawmakers also want them to make only trustworthy loans. But there are only so many good loans to make in a weak economy with high unemployment.
So the money’s not going where Congress wants. But where does Congress want the money to go?
We’ve looked it over, and even we can’t quite believe it. There’s $1 billion for Amtrak, the federal railroad that hasn’t turned a profit in 40 years; $2 billion for child-care subsidies; $50 million for that great engine of job creation, the National Endowment for the Arts; $400 million for global-warming research and another $2.4 billion for carbon-capture demonstration projects. There’s even $650 million on top of the billions already doled out to pay for digital TV conversion coupons. — Wall Street Journal
Don’t forget the billions of dollars they’re giving Acorn. And… wait… wait a minute! The whole farging point of this “stimulus” bill is to spend money, right? To “create jobs?” then why is buying a corporate jet a bad thing? That creates demand for jets, right? That stimulates demand for manufacturing jobs, right? Why is that bad spending, but $600 million for government cars is a good spending? Is there any sense in this mess?
The numbers are staggering:
If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars.
Crunching the inflation adjusted numbers, we find the bailout has cost more than all of these big budget government expenditures – combined:
• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
But some of that $4 TRILLION must be “good” spending right?
If, for example, your teenager came home after spending the day at the shopping mall with your personal credit card and tells you “Hey Mom and Dad, I know that you told me to spend no more than $100, but I spent instead $10,000,” you’d likely be furious. And you would not be becalmed by your profligate teenager suggesting that, because he spent $10,000, surely some of it is wise. — Don Boudreaux
We’re up to our necks in debt! Let’s borrow our way out!
I’ve said it before and I’ll say it again. If the economy really does need a “stimulus” then why not simply stop withholding taxes? Simple, easy, direct, effective, and immediate. But no graft.