[competentone]

Originally Posted by dtw

Interesting, I just met with some contacts at Bank of America this morning, and this was one of the first things we discussed. They did not need an infusion, but nonetheless received $25B under the plan. The 9 or 10 top bank CEOs were called to Washington and told "you need to take these funds". Here's why: the original plan was to target only banks that were in need of cash. However, it was reconsidered when it became apparent that this would just cause further flight from any bank that received an infusion, since they would be deemed 'sick'. Keep in mind that this bailout is as much about consumer confidence as it is about providing liquidity. If a bank receives $10B in cash infusion, but then depositors have a $12B run, then what really was the point?

I'm not in favor of the bailout program at all, for the record, but I don't find fault with the logic of how to apply the cash.

You mean to tell us you really believe that propaganda?