Tuesday, July 7, 2009

And Geithner blessed

Who is accumulating Capital One?

Is it just Paulson & Co.?

Has anyone ever walked in your neighborhood debt settlement business? And seen the tickets on the desks? $33,000, $71,000, $54,000, $39,000--The average ticket is $43,000. $43,000 of debt, that the credit card companies will probably get $10K for.

If they are lucky.

And Capital One repaid the TARP.

Who are they kidding?

How many people do you know, have received letters lowering their credit limits or cancelling their unused credit cards that have gathered dust?

Aren't these people "good" credit risks?

Now if these credit card companies are cancelling the good credit risks, doesn't that mean, they have way more problems on their books that are undisclosed?

After all, are these same banks accepting California's I.O.U.s?

A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.

Doesn't that mean they are being squeezed?

Does that mean then, that every bank that has already given back the TARP money, is a sale?

After all, didn't Timothy Geithner give his blessing to these companies?


As Timmy said:

"People will bring all sorts of financial prisms to judge the return." "Of course you have to look at the return to the country, not just in terms of the direct financial returns to the taxpayer, which are significant."

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