They are not using this money to, uh, lend to you, me, or the condo developer down the street,
They're, rather, using the money to buy up other banks, right and left. Ok, mostly right. Fun for all!
While that’s admittedly removing the smaller, weaker banks from the market – a possible benefit to consumers and taxpayers alike – this trend is also having a detrimental effect: It’s reducing the competition that’s benefited consumers and kept the explosion in banking fees from being far worse than it already is.(From link, just above.) In normal-speak; the banks are busily figuring out how to screw us over even more efficiently, using our very own tax dollars! Awesome leverage. Stunning. Mattresses are looking better all the time.
For example, Bank of America is using some of that sweet, sweet TARP money to buy up a Chinese Bank. Yuan for all!
How much money have you and I given Bank of America? Why, about 45 Billion. Fun for them, not so much for me, or thee.
This is what we get for putting the very people who created the crisis in charge of fixing it. See a problem there, just a little?
Oh, and Hi everyone, it's Djinn. I've been spinning rather more rapidly than usual and so have been unable to blog, or do much of anything. I was actually too sick to get my first dizziness treatment, because my Dr. forbad me from taking my old nausea medication while failing to prescribe me a substitute anti-emetic. Got one now.
Thanks to Calculated Risk and Stu Rees Cartoons for the pic.