Comment

Good tarp news ?

6
alexknyc10/05/2010 4:17:34 am PDT

re: #2 avanti

OK, why the bitching on the right when the administration tried to regulate the industry and and limit bonuses. It was accused of class warfare and being anti capitalist.

I’m not exactly a right-winger but even I bitched when the administration tried to limit bonuses.

First and foremost, those bonuses were contractually obligated. The Constitution is quite clear on the sanctity of contracts and the government being prohibited from doing exactly what they were trying to do.

Second, a large part of the economy of the financial district depends on those bonuses. Without them, restaurants and shops go out of business, pushing more people onto the unemployment rolls. Also, there would likely be a number of high-end apartment foreclosures.

I’m still on the fence about the bailout but I’m amazed that the government didn’t add any provisions about requiring a certain percentage of the money to be lent out. Banks got their money and either used it for mergers or sat on it as a reserve.