During the Clinton Administration, four trillion dollars disappeared through the back door. Rather, than get it back, the Bush Administration has decided to simply hand out more through the same banks as a matter of government policy.
U.S. Treasury Said to Invest in Nine Major U.S. Banks
The stock market rising today is not surprising. With government willing to finance 100% of any and all losses, why not buy up everything you can? Perhaps that is the plan.
The terrifying thing about it is that people worried about evaporating value in their 401(k)s are persuaded that this is a good idea. A perfect example of “shock and awe” terrorism.
This brings me back to one of my favorite quotes that explains why you can not “solve” with more government funding and guarantees the very problem created by government funding and guarantees:
“As long as I can get government subsidies, what do I care if people have education or jobs?”
–Dick Ravitch, currently Lieutenant Governor of New York, to Catherine Austin Fitts over dinner at the Jockey Club in 1997