Tuesday, October 28, 2008
In an act of superficial political theater today, Bush told banks to "stop hoarding money".
However, Bush's Treasury Department is encouraging banks to use the bailout money to buy their competitors, and has pushed through an amendment to the tax laws which rewards mergers in the banking industry.
Moreover, Bush's government bucked tradition and insisted that it only take non-voting shares in banks it bails out, ensuring that it has no power to require them to lend out money.
The government is saying one thing, while doing the exact opposite.