Hiding the Truth: Bailout Gimmicks

It's hard to tell if BofA was being cagey or smart. Consider that everything was going along famously until suddenly Lehman tanks. Within a few days every other similar institution and bank was tanking. Why? In part because they were all under the same financial pressures due to similar practices, but also in part because of the psychological affect of people concerned for the safety of their money. The "run on the bank" thinking that makes people take their money out of banks (or sell off the Dow) has more to do with fear than actual financial robustness. Once one goes they topple like dominos due to the over-reaction. So by essentially "hiding the banks in danger" it makes it harder for people to run out to BofA one day then run out to Citibank the next. So it lessens the fear somewhat.

On the other hand, some of this is simply the big corporations taking advantage of the bailout. This is their chance to "get a piece of the hand-out pie" from the government. That's what happened after Katrina, and I'm sure there is a large amount of that happening now.

Seems like no one was watching the store leading up to this crisis, and now the ones who are supposed to keep the store safe are standing in the doorway handing out cash to whoever walks up.

Not whoever, just the usual suspects.

that is just a shame !

Its like they are going to make sure the till is clean out and the middle-class gets stuck with either picking up the tab with more taxes (McCain) or with deferred programs to help with health care and education (Obama). Its getting past annoying.