Bailout Truth: Inflationary Crony Capitalism

The real reason that the bailout is "necessary," and "essential" is not that credit markets will freeze or that the world will end. By forcing the takeover of WaMu and Wachovia, the Bush Administration, Citi and JP Morgan have bet that together they can coerce and lobby Congress into passing a law that will allow Citi and JP Morgan to dump their newly acquired subprime loans on the gullible and unsuspecting taxpayer. If the bailout is successful, Citi and JP Morgan will have scored a two-fer. Not only will they have vastly increased their market share and asset base in the FDIC orchestrated takeovers, they will also be first in line at the fiat money creation trough as the Fed prints the money that will fund the Treasury’s above-market purchase of their subprime booty. Nice work if you can get it.

Bill Butler explains why the politicians are so anxious for a handout bailout plan.