Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest.
Now why would a bank do a silly think like pay off it's debt early?
He's been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with "adverse" consequences if its chairman persists. That's politics talking, not economics.
Consider that. Obama is using these loans to get power over these companies, and he's keeping them from gettting out.
Think about it: If Rick Wagoner can be fired and compact cars can be mandated, why can't a bank with a vault full of TARP money be told where to lend? And since politics drives this administration, why can't special loans and terms be offered to favored constituents, favored industries, or even favored regions? Our prosperity has never been based on the political allocation of credit -- until now.
Lovely. So Obama can force comapnies to take goverment money, then prevent them from giving it back, and since they have government money he can control them. Like fire their CEO or set pay rates for everyone in the company.
Which brings me to the Pay for Performance Act, just passed by the House. This is an outstanding example of class warfare. I'm an Englishman. We invented class warfare, and I know it when I see it. This legislation allows the administration to dictate pay for anyone working in any company that takes a dime of TARP money.
Ahh... government control of buisness. Remember that's only a bad thing when Republicans are in office.
It's not about helping the economy; it's about control.