The Federal Reserve rescued financial icon Bear Stearns to the tune of $200 billion tax dollars Friday and JP Morgan Chase immediately swooped in to suck up the bank at $2/share. Had the tax payers not injected the cash Friday Bear Stearns would have crashed due to a run on the bank. We don't have money for health care or roads and bridges but we pump $200B into a bank without a second thought.
Of course the fed had to or the economy might have collapsed over the weekend. This is a darned if you do darned if you don't scenario caused by a severe lack of regulation, oversight and enforcement. Typical Republican economic mismanagement. You can't trust the GOP with your tax dollars be it pork, wars of choice or allowing their corporate friends free rein.
The JP Morgan Chase takeover really stinks however because you subsidized this. You got screwed by unscrupulous mortgage brokers and crooked appraisers, by hedge funds speculating on packaged mortgages and a few Congresses and a President who refused to regulate these markets. Bear Stearns' stock dipped from $171 14 months ago to $2 today. This bargain basement price invited a quick takeover due to a nice taxpayer bailout.
In the eighties we had a similar multi billion dollar taxpayer bailout of the financial industry. Ronald Reagan and his friends deregulated the savings and loan industry and you paid dearly for that mess. Neil Bush (the president's brother) and John McCain were two of the unscrupulous villains involved in that mess. Now McCain is into financial hijinks again, trying to worm out of public financing for his campaign after using it to secure a multi million dollar loan and escaping about $4 million in ballot access fees.
Republicans had better stop screaming about funding programs for the poor when we're spending billions bailing out their friend's bad decisions. Where, exactly, does their credo of personal responsibility begin and end? Wall Street?