Obamanomics is all about bailing out those who made all the wrong decisions producing, managing and investing. Such as banks, automakers, insurance companies, inefficient government agencies, government mortgage companies, etc. All the enterprises that failed should get to join his wealth distribution plan which was to take money from efficiently run businesses and individual tax payers who were making money doing the right things such as saving money, not speculating, making wise investments and then use that money to bail out the failed and inefficient parts of our economy while making those who got him elected rich in the process.
Here is Mish (Michael Shedlock) analyzing some articles in his blog.
Davidowitz is correct about money going to the most inefficient parts of the economy. Bailing out AIG just so it can payoff Goldman Sachs is hardly a good use of taxpayer money. Nor is forcing a shotgun marriage between Bank of America and Merrill Lynch, only how have taxpayers pick up the tab.
Please see Let the Criminal Indictments Begin: Paulson, Bernanke, Lewis for my take on the coercion Paulson used on Bank of America CEO Kenneth D. Lewis, pressuring Lewis to go along with a merger he clearly knew was not in shareholder best interests.
Here is a snip from Geithner’s Plan Can Succeed: “The Plan: Dump $500 billion of toxic assets on to unsuspecting taxpayers via a public-private partnership in which 93% of the losses are born by the taxpayer.”