« Just so you know | Main | Theres a lawsuit in here somewhere »

"Thats some catch that Catch-22!" said Capt. Yossarian. "Its the best there is" said Doc Daneeka.

Since the beginning of the current banking and credit crisis, Ive been waiting to hear the sound of the rat trap as it snaps closed on the neck of the general American populace, and I'm here to tell you that I've just heard that fatal "snap".

For the past few months, all these banks have been running to Washington to get their hands on cash to cover their losses, losses largely caused by lending regulations imposed by Congress. "Yippie"! they all scream when the 'Peoples Purse' is pried open and gold coins sprinkle down from heaven, saving the poor unfortunate bank from certain financial doom. What a heartwarming story. Why it occurs to some people that every bank should take this sort of largess. Its there, its available and what could possibly go wrong?

Ah but remember kids, Washington favors always come at a high price. Check out this little blurb on the subject of loans to the Big Three car makers. They are sitting in Washington DC right now trying to get their hands on a little of that money themselves and rihgt off the bat, some Senator figures out real quick whos really in charge of the banks.

"As an alternative( to a cash bailout), Utah Senator Bob Bennett suggested Thursday that those banks getting money from the Treasury be required to convert any car maker debt that they hold into equity, thereby easing the Big Three's cash crunch."

Let it sink in for a minute. Ponder exactly what it is he is saying here.

Oh no... You mean the Government is now going to double down on the bad financial advice for banks? You mean to tell me that the same government that told banks via regulations to give people home loans who clearly could not qualify for the loans or even pay them back, is now going to tell the same battered banks that they have to give loans to the Big 3 Automakers, (companies that also cant qualify or pay back loans) because after all according to Senator Bob Bennett - Its the Congresses money that we gave you, right? We helped you, now you go do what we tell you to do - or ELSE!

This is how it ends. As of right now, the Senate IS the banking system. You just try prying the banking system from the hands of the Senate now. You want a loan? Sure, lets just check your voting record, lets see what kind of car you want to buy, oh darn its not a certified government "greenmobile", well sorry mr. Consumer, we cant give you a loan for that new Toyota Dual Axle truck for your ranch, but how about a new Chevy Cobalt Hybrid? Sure thing. Sign right here Mr. Consumer.

SNAP! Thats just how easy it is for you to find that you no longer have any economic choices. No banks - then no bank loans. No bank loans - then no economy. In point of fact, your entire economy is now run by just 100 people. 100 people that if most of us were in an elevator and any one of them got on, we would then get off and walk up the rest of the building rather than risk our well being by exposed to their close proximity.

Posted @ December 05, 2008 08:11 AM | Current Affairs

TrackBack URL for this entry:
http://varifrank.com/MT/mt-tb.cgi/1216

Listed below are links to weblogs that reference "Thats some catch that Catch-22!" said Capt. Yossarian. "Its the best there is" said Doc Daneeka.:

» http://americandigest.org/sidelines/archives/2008/12/varifrank_thats.html from Side-Lines
Varifrank: "Thats some catch that Catch-22!" said Capt. Yossarian. "Its the best there is" said Doc Daneeka. Since the beginning of the current banking and credit crisis, Ive been waiting to hear the sound of the rat trap as it... [Read More]

Tracked on December 22, 2008 01:14 PM