Alright folks, since my last post it appears as though our United States Federal Government wants to take steps to change the preferred shares of the major banking companies to true equity positions. What this means is that companies like Citi, Bank of America, AIG would essentially be owned and likely operated by our friends in Washington. Does that scare anyone??? It sure as sh^t ought to. The government cannot run anything, so how would we believe that they would be able to run these corporations? And does that not frighten you to have the US Government running the banks that hold BILLIONS of dollars of people's and businesses assets?
The sick part about this is that the banks are MAKING MONEY!!!! HELLOOOOOO, THEY ARE PROFITABLE!!! These companies that accepted the TARP money have ALREADY turned profits in Q1 of 2009.......many want to return some or all of the TARP funds. It is clear that the Government has thankfully done their job and direct control/intervention of banks is NOT REQUIRED. The bailout seems to have worked so the US ought to take the repayments of the TARP funds and GET OUT OF THE WAY. The real test of long term recovery of the financial system will be whether these companies can heal themselves from here. And besides, we as citizens should want these companies to pay back the HUNDREDS OF BILLIONS of dollars to pay down the Fed's debts. God knows we need to do so.
I leave you with this thought: Are we headed towards becoming "The People's Republic of America"? Would love to hear your opinions on this. Thanks, JC