If I ran a company that had shoddy business practices and lost a lot of money because of it, would you bail me out? Would you let me suck a huge bonus out of the company first? No?
Well, what if you are a bank or insurance company? If you live in the USA, then you are going to pay! You have no say. The big executives and shareholders get to keep those bonuses, dividends, and profits that they got when they were lending money hand over fist, and you get to pay off the bad debts! What a deal! In fact, the worst financial companies in the US financial crisis paid out 258.7 Million to their CEOs in 2007 alone!!!! Here is a link to the breakdown of the Fat Cats incomes.
The capitalist free market is only so free. When times are tough, they need the poor to bail them out! And stockholders love the government getting rid of the company’s bad debt, so they can make more money on their share price.
If you don’t believe that the government didn’t see this coming, here is a story of the major lending that were allowed to slack off their lending criteria thanks to the Bush regime.
And here is the story that Bush is backing the bailout. How nice of him…
This is just sick. If the government is going to keep these banks,lenders, and insurance companies afloat, then nationalize the entire industry. Take away the fat cats and profit taking. I don’t see that happening any time soon!!