10.31.08
How’s the Bailout Going?
The money started flowing a week ago. So is it working? Markets are up, but it would appear waste is up and the scandal barometer is spiking. See The Early Results of the Government Bailout. Excerpt:
1) The Cash is Lost. See “Where Did the Cash Go?” by Mary Walsh in the New York Times. AIG took $123 billion in just a few days and spent it. Ms. Walsh cannot trace the use of the cash in the company’s financial.
2) The Cash is Not Spent the Way It is Supposed to Be Spent. Banks Are Not Lending Bailout Money (multiple stories). They are using the cash to pay dividends, make acquisitions, and just as hoarding fodder.
