Friday, December 19, 2008

Daddy, what does theft mean?

So if I borrowed money from the bank for a mortgage and then spent it on a vacation to Malibu, how could I expect the bank to lend me more money to actually pay off the house?

So the Fed convinced Congress to lend $700B immediately under threat that failure to do so would result in major calamity, crumbling markets, total deprivation and the end of the world as we know it. With oh, by the way, no oversight. Then the Fed gets its hands on the money, drags its feet in distributing it, and changing its mind on what strategy, if any, should govern the distribution. And since they have taken their sweet time (with no discernible apocolyptic consequences) the administration decides it's going to spend the money on something else entirely. And, Congress, you can decide now to give us more money.

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