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Monday, February 1, 2010

Obama's Banking Bipolar Disorder

This administration seems to have bipolar disorder.

They continue the Paulson bailout, which allows JPMC and Goldman to become bank holding companies. They buy shares of the biggest banks, which causes their share prices to rise. Naturally, this helps the big bankers give themselves big bonuses and the banks to report big profits ( based on phony accounting, of course, but they still report them ).

 Then the bipolar disorder kicks in- the administration turns populist, and yells at the big banks for making too much money and enjoying large bonuses???

What did you expect? You bailed them out with zero interest money. OF COURSE the large banks will have a nice ride on that free credit.

OF COURSE the large banks are going to get bigger. The large banks were rescued by an institution that controls the printing press. They hit the lottery.  OF COURSE they're going to go right back to dominating the financial sector. They're pumped full of corporate welfare.

If you don't want big banks to get fat and resume their consolidation of the market...stop feeding them free money. Kill the zombie banks or live with them. Pick one or the other, Obama administration.

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