Willie Sutton the famous bank robber was once asked, “Why do you rob banks?” He curtly replied, “ Because that’s where the money is! Last week a man walked into a local bank in downtown Pittsburgh during the Super Bowl parade without a mask, dressed in full Steelers attire and robbed it. He got to the street and the sack he was holding blew up and he was covered in red dye. His getaway into the crowd of Steelers fans was successful but his money the get-a-way loot lie on the ground. His glossy eight by ten picture was all over the evening news. Not far away another attempt at a robbery was carried out successfully, money an all. Unfortunately for the robbers, the female accomplice left her purse and house keys at the scene of the robbery! Police later remarked they would just wait for them to get home and get them then!
Seems lately it’s not only the robbers and the man in the street that can’t make it anymore, but government as well. How do you give a bank a billion dollars and sit patiently through a conversation where they tell you that things are not going good? I trust to a person that if today, the federal government put a billion dollars in any one of your accounts you would be feeling a lot better about just about everything. The American worker is no longer being outsourced. He’s being exterminated! All the while our government and legislators sit and tell us the only way out of this is with more of our money. Here are two words that might help. “Criminal prosecution!”
Reminds me of the childhood tease; “How do you spell gullible?” “It’s written on the ceiling!” and guess who looking! Last nights first news conference from President Obama was quite a change from the last eight years, I don’t think I yelled at the television once but in it he promised today that Timothy Geitner would be laying out how he was going to give the banks their second Christmas in only two months! The plan as explained by our new Treasure Secretary is not yet fully done he announced much to everyone’s chagrin. Still working on certain aspects of it? But this is what they have so far.
First up will be the creation of a federal bank of sorts that along with private investors help will buy up bad loans. “Toxic Assets,” that banks want to take off their books. These would be things like mortgages on houses the banks have foreclosed on or things like bad paper that has a bunch of mortgages rolled into a ball where the majorities are no longer paying interest or on the debt they support. If you have a degree in economics you probably will understand how this works. For the man in the street though, it all sounds like a game of three cards Monty. Which coconut shell has the bad mortgages under it? Given the fact that the bets are in billions of dollars I can only hope you are watching closely!
The second part of the Geitner plan calls for the Fed to back loans for consumers and students. Hmm. At which part do those billion of dollars we gave the banks in tax payer money start coming back to us? Not sure. We get paid last remember.Critics of the proposal are saying, “ Hey here we go again. It’s the same thing Bush did.” That being turning our money over to the bankers and Walls Street brokers and saying ,’ fix it!”
Wall Street is down 200 and some points at this part of the day. Looks like investors are not that impressed with what they h ave heard so far. Too bad Willy Sutton isn’t still around, because quite frankly he would really be right today!!