Finally - a truth about too big to fail - from John Bowman, the new director of the Office of Thrift Supervision (OTS)

Too Big To Fail.
One truth has been told by a government official FINALLY.
Today is June 3, 2009.

Here's the truth.
Mr Bowman, on Bloomberg TV today with Kathleen Hays, stated publicly and named Citigroup, Bank of America, Wachovia - "The too big to fail were Not allowed to fail" further he stated "absent government intervention [more plainly known as the taxpayers assistance] would have failed."

Let me repeat that - "Not allowed to fail" and only because of massive assistance, free lunch from the taxpayer would have failed.

I say and many others may agree - despite the money - the manner in which the money was basically handed out to the above and the financial accounting rules softened such that "new and improved fair value" with fabric softener was to be used upon those soiled off balance sheet bets, er excuse me assets to freshen them up for the new owners, US taxpayers.

Bloomberg ran a story Friday June 5, 2009 (re: the above "new and improved" accounting would have wiped out MORE than Citigroups first quarter profit of $16B - not a typo) http://www.bloomberg.com/apps/news?pid=20601109&sid=alC3LxSjomZ8&refer=exclusive.

The first George Bush, #41 coined a phrase that resonates "kinder and gentler". And further coined "a thousand points of light" as long as light does not apply to certain banks, brokers, insurance outfits, better described as credit default guarantors is yet again another manifestation of how the monied set can create its own more than unique perception of reality. Mary Karr, literature professor at Syracuse, offered an example from her new boy friend's family from Long Island's North Shore, the family has always had a dog named "Tiger" - yes correct Tiger #1, 2, 3, 4, 5, 6.

There is a reason - the hearings on the multi trillion bailouts ocurred after the elections - the elected public officials / politicians hope that come the next election cycle - bailouts will be a faded memory to which this writer says - Hope and denial is not an investment strategy - never was, never will be.

Assets compared to Liabilities.
Assets can go up or down in value, everyone knows this. Debt, US Treasury / Government Debt on the other hand have these unique qualities: a due date, interest rate and no, the amount owed does not change or go away, ever.

Consider the Urgent Fornicate for America Act.
Update JULY 28, 2010 - Bill Gross, in his famous Deficit spending is like flushing money down an economic toilet then added that declining birth rates do not help the current situation.
Maybe I should have pulled the trigger - back in the Fall of '08 to suggest, not totally facetiously, that Mr Obama should have proposed and pushed for enactment of the Urgent Fornicate for America Act (UFFAA). What with winter then setting upon us, temperatures outside dropping, tensions inside rising and more and more Americans home from work (layoffs, less hours and just plain old full unemployment) what better way to keep the NOT-entitled-to-a-bail-out-taxpayers happy? And such a deal - get $500 instant cash, better than a tax credit for every baby born in 2009 and 2010. But in order to actually get the cash, taxpayers must sign a confidentiality agreement - never disclose to the new babies, ever. Just so the game can go on; business / politics as usual.

- yet another preventable principal agent conflict of interest problem on the current and future taxpayers' dime.