U.S. Treasury says additional bank bailout capital needed

November 14, 2008 by · Leave a Comment
Filed under: Industry News 

Well in this request, Hank Paulson is only asking for the rest of the bailout to be released to utiliza all of the TARP resources.  He does on the other hand, leave the door open for the need of additional capital for the financial system.  This is a losing path either way, if we bailout the bad banks that should of failed at this point then we are just telling the financial world “hey, don’t worry about risk because if you screw up big enough, we stand ready to bail you out”.  

In my opinion we have now turned Wall Street into Casino where the government is the house and when you lose big and your a big player then you will be comped your loses or you are put into a position to work the debt off.  Free markets do not work this way. 

News:

U.S. Treasury Secretary Henry Paulson said on Friday recapitalizing banks is the most effective use of a $700 billion financial bailout war chest but acknowledged the United States’ reputation has been tarnished as a result of the financial crisis that has spread worldwide.

 

“We have in many ways humiliated ourselves as a nation with some of the problems that have taken place here,” Paulson said in an interview with CNBC television.

 

Leaders of major industrial and developing economies are meeting in Washington on Friday and Saturday to discuss how to move forward from a financial crisis that began with the collapse of the U.S. housing market under a load of toxic debt and is now pushing economies around the world into recession.

Full Source: Reuters

 

 

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