The Big Picture

Why Bailouts Attract Handout Seekers

Wednesday, November 12, 2008 | 09:40 AM

in Bailouts | Corporate Management | Credit | Derivatives

“The biggest surprise was how quickly it went from ‘I don’t need this,’ to ‘How do I get in?

-Michele A. Davis, Treasury Department, head of public affairs

A truisim of all bailouts: Enormous amounts of taxpayer cash attracts all manner of unsavory, undeserving characters. What was supposed to be a narrow and limited attempt to reduce the systemic risk of a financial collapse has become a taxpayer funded free-for-all.

Like hyenas trying to steal the kill from a lion, the mere scent of this enormous pile of loot starts attracts the scavengers. They cannot help themselves, for it is their essence, and who they are.

Like the dreaded 17 year locust, Lobbyists too, are swarming the capital, consuming everything in their path. Never before has a trillion dollars been authorized so quickly. Never before has so much money been spent with so little oversight, controls, or transparency. Now, on top of the negligent manner in which this money has been thrown about, we have the latest jackals attracted by the scent.

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