July 16, 2009
Taxpayers Expected To Loose $2.1 Billion On Small Bank Paybacks
Eleven small banks have paid back the Treasury for warrants the government purchased in order to help the banks afloat. The total amount of payback is $18.7 million. However, under the terms of the loan, the taxpayers should have received an additional $10 million. But the banks were allowed to slide by Treasury, and it seems the White House is ok with it.
A Washington Post staff writer says if the same deal is struck with other banks that sold warrants to the government, it could amount to a $2.1 billion loss for taxpayers.
You gotta love our government officials — what the corporations don’t steal, they will just hand it over. When the public was told by those officials, and echoed by the news media, that not only would we get our money back but most likely would see return, I suppose we were suppose to believe those flagrant lies. But what did we expect — they’re so use to lying to us and we’re so acceptable of those lies, why stop? When something is working perfectly, don’t change it!
Yet Another Multi-Billion Dollar Loss For Taxpayers
The federal government is not going to lend CIT Group any more money according to The Washington Post. Unless there is a change of heart, the government has decided that CIT is fit for bankruptcy if CIT’s only other option is an influx of taxpayer money. According to CIT, their biggest customers are small and medium size businesses. Small businesses are defined as having less than 100 employees here in America (50 by EU Member States), and a medium size business is defined as having less than 500 employees (250 by EU Member States). According to the article, CIT is not among the very largest financial firms.
The problem that is being focused on is the problem the reported 1 million customers will be left with, which is no place to borrow money. However, the problem for the taxpayers is we will loose the $2.3 billion that was blindly handed over to CIT back in December 2008. If they fail (trading of their stock was halted yesterday), CIT will be the first bailed out bank to do so. There most certainly will be others, the most likely (of the big banks) being AIG, which will take $180 billion of taxpayer money with them.
Supposedly, according to the Post, the government wants to demonstrate that they are not going to bail out every failing bank, something they should have done last year. But politics got in the way, justified by a whole host of lies, con games, and propaganda topped off by telling us that these banks were “too big to fail”. In the case of CIT, we have Tracy Mullin of the Nations Federation of Retailers telling us that CIT is too important to be allowed to fail. But a long as the taxpayer money damns are open, flooding an unlimited supply of free money, everyone is going to declare they are too something to fail. The only people that don’t matter are the working folks and their tax money.
T. Boone Pickens – an American Patriot?
Remember the grand speeches on television from T. Boone Pickens about all that personal money he wanted to spend “because America needs independence from foreign oil”? Remember him appealing for our support by exploiting his American Patriotism? Remember his rally call (something to the effect) — come on America, it’s time to wean ourselves? Well, well, well! It looks like profits (and maybe the shortage of taxpayer money) got in the way of ol’ TBP’s wind farms.
The Washington Post published this article that says Pickens has “temporarily shelved plans to build the world’s biggest wind farm”. According to Steven Mufson, the writer, the reason is “tight credit markets and low natural gas prices”. But later in the article, Mufson points out that a spokesman for Pickens’s company said they couldn’t get the $2 billion loan to build the transmission lines, so they are going to wait for the state (Texas) to build them. Doesn’t this sound just a little like Wall Street? Socialized losses and privatized profits? Why not — Wall Street got away with it.
Another Illegal Dip Into The Taxpayer Gold Mine
Executives with Science Applications International Corporation (SAIC) conspired with corrupt Navy officials to rig a 2004 computer contract. The company earned $450 million last year, but no break down on how much of that came from the government. However, the company could be fined as much as $350 million for the theft. Interesting enough, the article referenced above says “a judgment might also lead the government to temporarily suspend SAIC from competing for new contracts”.
Notice the wording of the quoted sentence above — might also lead the government to temporarily suspend ——. “Might” — but only “temporarily” if they do. It’s no wonder these corporations have no fear when it comes to stealing from the taxpayer. Individuals are seldom punished, and the company either simply keeps on keeping on or is “temporarily” suspended from doing business with the government. Oh, yea! The last paragraph in the article; “By the way, SAIC’s disputed contract finally ran out last year, and after revising it the government once again put the work out for bid. The winner? You guessed it: SAIC”.
Never underestimate the difficulty of changing false beliefs [with] facts.
Economist Henry Rosovsky