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01-22-2009, 02:20 AM
Why Bailing Out Banks Doesn't Work

by Shamus Cooke

Global Research, January 21, 2009

The New York Times recently posed an excellent question: “Why save banks if they won’t lend?” (January 19, 2009)

Before the first $350 billion “installment” of the bailout, we were told that the money was needed to “unfreeze” the credit markets, meaning that banks would again be willing to lend businesses the money they needed to continue doing business.

Despite hugely popular opposition, the bailout proceeded, and absolutely nothing changed.

The congressional “representatives” who passed the bailout bill acted shocked: instead of giving loans, the banks hoarded the money, bought other banks, and continued to pay the lavish salaries and bonuses to CEOs. Meanwhile, the economy continued to crumble.

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Why Bailing Out Banks Doesn't Work (http://www.globalresearch.ca/index.php?context=va&aid=11942)