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3/4/09

Alternet: US Economy - Zombie Banks ( Citigroup and Bank of America) are Devouring Our Public Money with No End in Sight - by Bill Moyers

For the complete report from AlterNet click on this link

US Economy - Zombie Banks ( Citigroup and Bank of America) are Devouring Our Public Money with No End in Sight - by Bill Moyers

A zombie bank is a bank that's insolvent that's allowed to continue its activity. It's allowed to go on living as a dead financial entity. The zombie will continue to lose more, and the taxpayer, kind of off the government's budget, will continue to experience larger and larger burden of future losses. President Obama intends to hold these banks fully accountable for the assistance they receive, and this time they will have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer. This time CEOs won't be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over. The President also spoke about what you might call free market fundamentalism. Unfettered, unregulated markets as one pole, and what you might call administrative socialism as another pole. We've got to end up somewhere in the middle. Where the market's dynamism and flexibility is honored, but where you have real regulation and real enforcement. It's been a long time since the president has talked like that. So that's a hopeful sign.

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