Wall Street Demands Derivatives Deregulation In Government Shutdown Bill

[CuteOldGuy]

GM had a special bankruptcy, not one that complied with the code like normal businesses. It required the the taxpayers to take an ownership interest in the company, on which we lost money. Who bailed out AIG?

Where did all that tarp money go? If these kind, benevolent corporations didn't take it, where did it go? If none of them needed money, why was there a crisis?

[lustylad]

There was nothing wrong with the GM bankruptcy being pre-packaged in order to accelerate the process. And there was nothing odd about the taxpayers taking common stock in the new GM post-BK since they were the biggest single creditor. The scandal (the part that violated established BK law and precedent) lies in the way the Obama team divvied up ownership shares for its cronies in the UAW that should have gone to the taxpayers (i.e. the US Treasury) and other creditors. Had this not occurred, we as taxpayers would have recovered all of our money sooner and not wound up with a loss. So if you want to toss around the word corrupt - it clearly applies to the way Steve Rattner and Obama bent the rules in the BK.

Why do you ask where the TARP money went? That information is very public. It's easy to follow the money. There are even websites tracking it. Who said the recipients "didn't take it"? Of course they took it. It showed up right away on their balance sheets. Debit cash, credit preferred stock. I never said no one needed it. I said many of the largest US banks didn't need it at the time. GM definitely needed it. The reasons why there was a crisis are complicated, and you shy away from anything complicated. The short answer is because rising mortgage defaults caused normal credit and lending to dry up. The TARP money was dispensed to shore up public confidence and demonstrate that the US government stood behind the entire banking system. The money went to ALL the largest banks (including those who didn't need it) because Hank Paulson didn't want to stigmatize the weak ones (like Citigroup) who did need it. This is all well documented.

Now a question for you, COG - why don't you talk about the fact that the TARP money was fully repaid and taxpayers wound up with a profit? Because it doesn't fit your false narrative about corporations "robbing taxpayers"?

.

[CuteOldGuy]

It was not fully repaid. This has been fully discussed.

[lustylad]

Originally Posted by CuteOldGuy

It was not fully repaid. This has been fully discussed.

From yesterday's WSJ:

"The U.S. government closed a chapter in financial-crisis history Friday when it sold its remaining shares of Ally Financial Inc. and shuttered its auto-bailout program... The Treasury Department said the 2008 Troubled Asset Relief Program has netted a small profit, returning $441.7 billion on the $426.4 billion invested..."


Wanna try again?

[CuteOldGuy]

Nope. What else would the Treasury Department say? If it is true, what rate of interest did we earn? It was a bad idea. If Ally can't manage itself, it should have gone under. It's not the job of the government to prop up failing businesses. Their only Constitutional authority is to make sure the assets are distributed appropriately, pursuant to bankruptcy law. The on the books, not a made up law to benefit the President's political supporters. And we lost money on GM. I'm surprised how much of a statist you are, Lusty. I thought you were smarter than that. And now you believe the government without double checking. Hmmmm.

[nwarounder]

Another classic example of where you just can't legislate stupidity out of human beings.

If you are less intelligent than the guy selling you something, you will be the one to lose and he will be the one to gain. It's been the law of the land for thousands of years, and no Barney Frank legislation will ever change it.

For Christ's sake people, educate yourselves and others and quit being slaves to the government, requiring them to protect you. Just quit being stupid.