Here's how to find the most blatant crooks in the still unfolding $1.5+ trillion TARP and AIG scandals.
Simply have a look at the recipients of the TARP funds and ask: which one of these can't directly "free up credit" because it isn't even partly a Bank?
Make no mistake - we understand that:
- many of the companies are conglomerates that do own banks
- many banks failed to provide credit with the money they received, when in principle they could have
But which recipients aren't in either category - because they're not lending institutions, they're speculator/traders who could NOT lend money -- but instead could only have their bad, speculative decisions and subsequent debts palmed off on the taxpayer - rather than investigated?
Um - I'm not a Wall Street expert or economist but - is Goldman Sachs really a lending institution?
I understand Goldman Sachs is more of a bank holding company than a bank. It can't actually offer mortgages, or lend money to individuals or businesses. It can only hold banks hostage by threatening default on its financial obligations.
Last year the people in charge of the US economy - dominated by Goldman Sachs alumni like Secretary Henry Paulson - were threatened with this, decided it would be bad for the country if that happened, and were very effectively taken hostage. Like other hostages with Stockholm Syndrome, the Obama economic team thinks it's inherited a heckuva good plan.
Which other bailed out firms on the TARP list don't offer loans?
I look forward to your expert analyses.