Play #2) Blame someone else

The banks have been required to carry preferred stock on their books at par of the amount received that pays 5% per year for the first 5 years and then 9% per year after that unless the stock is redeemed by the bank.

This gives an incentive to the bank to give Uncle Sam back his money so they only have to pay interest on the money for 5 years.

Republicans, who are they?

There’s a surprise.

I hope we don’t do it, as it will be siphoned off by Blago types.

But if, God forbid, we do, an amount that large to be spent on lasting physical projects needs some planning & vetting. Otherwise, we’ll get the Paulson “Here you go” approach.

While I don’t necessarily disagree w/ the strategic decision to tackle the negative multiplier effect of the credit crunch withdrawal by addressing the most basic and easily measurable cause, the level of capital, I’m sure a good portion was siphoned off in the tactical haste to get it done. (No controls, conditions, etc, which a capital provider has the right to demand as terms of the deal.)

Does anybody here know how much equity the US Govt acquired for its $700 billion capital infusion? But for a few examples here and there, I don’t (e.g. 80% of AIG).

The Congressional Republicans need to pounce on this and have their plan available to the public prior to Obama’s transition team figuring out what they are gonna do. This will allow us to further divide the Dems on this and probably pull in some Blue Dog support. Plus if we get ours out first it will put Obama and the Dems in a position of having to say no to us and display that they have no intentions of being bipartisan.