Married to the mob

Byline: | Category: Economy | Posted at: Sunday, 19 April 2009

Imagine a loan shark who forces your business to take a loan, and then when you want to pay it back says, “No, you can’t; instead we’re just going to convert that loan to part ownership of your company, which you can’t refuse.”

It’s like a plot of a bad mobster movie–only it’s happening, and it’s the federal government playing the role of the mafia don.

With the federal government forcing itself into the lead role of the nineteen banks that control 80% of the nation’s banking, if this TARP plan goes through, I’m afraid that it’s time to start withdrawing assets from banks that took federal funds and move them to those that did not.  Does that mean that the taxpayers could lose all the TARP money?  Perhaps.  But tell me with a straight face that you don’t think that’s a fait accompli anyway.  If it is the case that the money “invested” in bailed out banks is lost, then keeping your money there is throwing good money after bad.  And if it’s the case that those banks are fiscally sound, then the withdrawal of assets shouldn’t effect that. 

Besides, do you want you really want your money married to the mob?

Here is a list of bailed out banks and the amounts they took.

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