Paulson’s Parallel Universe

In the real world, strong banks that made good decisions should thrive and weak banks which made dumb investments and lending decision should fail.

But in the parallel universe inhabited by Sec Treasury Paulson, the wealthiest banks as well as poor banks should all get bucket loads of money so consumers won’t know which are weak and which are strong, but will keep on banking with the weak banks. As CNBC writes:

“Nine of the largest U.S. banks were essentially arm-twisted last week into signing on for the first $125 billion in capital infusions in an attempt to remove the stigma that participating banks need the funds to survive.”

In the real world, banks aren’t lending, and they’ve admitted that – no matter how much the government throws at them – they won’t lend in the foreseeable future.

But in Paulson’s parallel universe, the banks will be cheerfully handing out loans loans left and right to every mom and pop who politely ask:

“Our purpose is to increase confidence in our banks and increase the confidence of our banks, so that they will deploy, not hoard, their capital. And we expect them to do so, as increased confidence will lead to increased lending,” Paulson said on Monday.

In Paulson’s reality, everything is working out just fine. But in the real world where the rest of us live, the real problems aren’t being addressed, and the bailouts are only making problems worse.

This entry was posted in General. Bookmark the permalink.
  • http://www.blogger.com/profile/11851308758539648628 Old Atlantic Lighthouse

    Glad to see you are sticking on the bailout. Lehman Brothers was left to fail and that is called a mistake. Why was there no follow on bankruptcy then? The bailout of AIG FP went to hedge funds that bound credit swaps on Lehman failing or others betting on rating declines. AIG has drained over 100 billion from the government. Which had to go to those who bet on failures and downgrades. Many of whom were hedge funds. I-banks that had offsetting swaps needed the money from the AIG bailout or they would have been caught. Its an insiders game and it takes just a little bit too much time for most people to think through where the AIG 100 billion bailout money went to, hedge funds and players, many of whom hire from the top ranks of DOJ, Fed, Treasury, etc.

  • http://www.blogger.com/profile/04574914887425888318 wow gold

    World of Warcraft wow gold monthly comic wow power leveling series hits wow powerleveling stands today! This power leveling new ongoing series powerleveling kicks off with wow power leveling part 1 of a 6-part wow powerleveling story arc written power leveling by Walter Simonson powerleveling and illustrated wow gold by sensational wow power leveling French artist wow powerleveling Ludo Lullabi power leveling and Sandra Hope powerleveling Each issue of wow gold the 6-issue story wow powerleveling features two different power leveling covers: one by comic book legend powerleveling Jim Lee and the other by Blizzard’s very own Samwise Didier!

  • http://www.blogger.com/profile/17497535830962810665 game gold

    Without thinking I buy some dofus kamas . I use some kamas and want to find a good group. We often buy cheap kamas together on Monday. As if it is a rule. I think it is the real friendship. buy dofus kamas is already become the essential thing in my life. So I will introduce my friends have the dofus gold , we can be consist of a group, it must be very interesting.

  • http://www.blogger.com/profile/14557050233215429265 筱娅

    Do you like playing in the game which you need to use priston tale Gold, when you do not have priston tale Money, you must borrow it from friends, or you buy priston tale Gold. If you getcheap priston tale Gold, you can continue this game.

 

 

Twitter