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How’s the Bailout Coming?

Felix Salmon at Conde Nast gives us a bit of perspective on how the details of the bankdebt buyout capital investment plan is going.  As always, it’s a bit of a read with a few weird jargon words, but this is about as straight forward as Felix gets most of the time.

The trouble, as Salmon sees it, is that whereas the British model of capital investment has been tied to strict requirements of the banks the government is funding and forces CEOs of those banks to step down, no such restrictions are present in the U.S. model.  Once again, we’re just handing money to rich people and expecting them to do good.  The practical outcome of this scenario is that banks are handed money with which to potentially gamble on riskier forms of investment to bail themselves out quicker.

So, in short, we’re handing them back more money to do even more of the same risky crap that got us into this mess.

By Tommy Belknap

Owner, developer, editor of DragonFlyEye.Net, Tom Belknap is also a freelance journalist for The 585 lifestyle magazine. He lives in the Rochester area with his wife and son.