To: i-node who wrote (447447 ) 1/14/2009 11:30:35 AM From: tejek Read Replies (2) | Respond to of 1576663 Why did I believe anyone in your precious Bush's administration knew what the hell they were doing. Paulson fukked us......big time.....and it makes me sick. As for Palin, she is a flaming clown.....deal with it!Unfairly Rewarding Greedy Bankers, and Why It Works By Steven Pearlstein Wednesday, January 14, 2009; Page D01 There's been a lot of grousing lately about the Treasury's $700 billion bailout program, which, according to its many critics, has accomplished nothing other than line the pockets of undeserving bankers and their shareholders. Maybe I'm missing something, but I don't see how it's possible to rescue the banking system without rescuing banks. That's not because anyone thought banks or bankers were particularly deserving of public charity or even sympathy -- clearly they weren't. But by last summer, with investors, lenders and depositors running for the exits, there was a genuine fear that the banking system could collapse and bring the whole global economy down with it. To prevent that outcome, the Treasury asked for $700 billion that it could use not only to mount rescues of individual institutions, but also to try to get ahead of the crisis by taking proactive steps to shore up the financial system. Sure, you can question how the money was used -- many of us have -- but you can't quarrel with the fact that a financial meltdown has been avoided as a direct result of the government's extraordinary interventions. Fannie Mae and Freddie Mac are providing much-needed support to a mortgage market that would be shuttered without them. The orderly wind-down of AIG's book of credit-default swaps prevented the collapse of an enormous financial house of cards. Citigroup was prevented from becoming the next Lehman Brothers, while the balance sheets of the other big banks have been fortified with additional capital in expectation of further significant write-offs. Who has benefited from all this? Every investor, every household and every business in the United States. You may not like the fact that, as a result of these actions, overpaid bankers were allowed to hang on to their jobs or preserve the value of their stock holdings. And you may be unhappy that the financial system remains in such fragile shape that it is still hard for some people and businesses to get loans they think they deserve. But let me assure you that things would have been a whole lot worse if these actions had not been taken. One of the more specious criticisms is that the government "gave" $250 million to big banks that are now just "sitting" on the money or using it to feather their own nests. First off, we didn't "give" money to anyone. We invested money in banks in exchange for preferred stock, which is now earning a 5 percent annual dividend. Unless the banks go under, taxpayers will eventually get that money back, along with a modest profit. read more...........washingtonpost.com