Foreclosure Fiasco Continues: The Bush-Obama Strategy of Throwing Billions at Banks Doesn't Work

[keep_it_real]

State and local governments have been forced into draconian budget cuts, firing workers who are among the most reliable in making their mortgage payments--when they have jobs. Yet the Obama administration won't spend even a small fraction of what it has wasted on the banks to cover state shortfalls.

California couldn't get the White House to guarantee $5.5 billion in short-term notes to avert severe cuts in state and local payrolls, from prison guards to schoolteachers. Compare that with the $50 billion already given to Citigroup, plus an astounding $300 billion to guarantee that institution's toxic assets. Citigroup benefits from being a bank "too big to fail," although through its irresponsible actions to get that large it did as much as any company to cause this mess.

http://www.alternet.org/workplace/140943/foreclosure_fiasco_continues%3A_the_bush-obama_strategy_of_throwing_billions_at_banks_doesn%27t_work/

[Zynx]

1. States have been given a great deal of money to narrow their budget gaps.

It's not just the state fiscal stabilization funds. The FMAP and much of the education aid given to states is being used to backfill cuts made to general fund allocations.

The result is that states have been given very large amounts to lessen their budget cuts. This is simply not a valid criticism.

Also, unlike a large amount of the TARP money, the Federal Government will never see this money come back.

[FreakinDJ]

2. The Ill-effects of Globalization and De-Regulation

can not be fixed with throwing money at it

it takes regulation and imprisonment of Robber-Barons

[KakistocracyHater]

3. I guess it means California is NOT big enough?

We're not counted among those 'too big to fail', huh, who'd a thunk it?