Bailout or Failout

So it has been a couple of months since the bailout took flight and I think we can all agree what a resounding success it has been. Right? Right? Anyone? No takers? I am not surprised.

400 billion was put out there with the intent of righting the ship and the ship still lists dangerously close to going over. Banks have not loaned the money and the reasons for it have been many to date. I have heard that they are waiting for the bottom of the market. I have heard that because the Government did not give the banks guidelines for using the money that the banks are within their rights to manage it how they believe they should. I have even heard that the money is out on the sidelines because there is just no place for it to go right now.

Here is my spin. The money has not been loaned because there is no profit in lending it right now. Rates are not favorable for banks they are favorable to borrowers. The banks want to make money on the money that they loan so it seems to make sense to me that the banks will not loan the money while the rates are not favorable for them to do so. The prepostorous part of this is, IT IS NOT THEIR MONEY!!!! If the motive is profit, and I believe that at least part of it is, the government should take the money back. At the very least they should pass some laws with rules about what the banks need to do with the money.

This has been nothing more than a cash grab and it needs to end now, of course with the unprecedented amount of boondoggles in Washington DC these recent years I am not shocked about any of it.