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Us Bail Out Cash Not To Be Used For Economy....

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At the end of an employee-only conference on Oct 17th at JP Morgan Chase, discussing, among other things, the recent bail out, an employee asked "What effect will that have on the business side and will it change our strategic lending policy?”

Here was the response:

“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”

So there you have it. US banks will not use the bail out for the publicly stated intention, but instead use it to "acquire" other banks.

Source: new York Times Business Section:



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Of course, banksters have a fijudicial duty to earn for their shareholders.

So, in doing this duty, they go bust but get bailed. What next?

Clearly the duty has not changed, so lending to industry where recession is coming? too risky.. hoarding and buying other banks... thats much safer.

Obvious.... shame politicians cant see it....or maybe a board placement awaits....Mr Blair, we are watching you.

Edited by Bloo Loo
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Market Ticker has confirmed this too....


Your Treasury Secretary shoveled taxpayer money at banks so they could pay out $70 billion in bonuses and make acquisitions, he did so with full knowledge that this was going to happen, and he still has his job that he holds at your pleasure.
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Unitl a whole generation of bankers and their junior offspring go to jail or die, then nothing is going to change. They have no interest in the economy or the vast majority of the population, they are sociopathic devients just looking for the next kill and filling their own pockets. The massive bailouts was just the goverment giving the bankers approval to carry on as usual. Hopefully this will have an effect on the election, unless of course US citizens are even more stupid than we give them credit for.

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This is precisely why the regulators have deleveraged the banks (and reduced their funding costs) - so that they can continue to function.

It seems as if the NY Times' journalist (and let's face it, editorial control) is more interested in the prospect of a paper-selling beatup than understanding what it is that banks do.

It's amusing to watch the message resonate amongst some here though, I must confess.

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