Tuesday, October 28, 2008

Call out the dogs

The realization that banks are not lending out the money that the US has just given them has clearly enraged the administration. They're so enraged, they called out the fiercest and most frightening spokesperson in their arsenal, Dana Perino. Just listen and tremble, ye mighty:

"Banks exist to lend money -- that's how they make money," White House spokeswoman Dana Perino said as the Treasury prepared to deliver the first round of infusions of a 250-billion-dollar recapitalization plan.

"So we think that one of the things that we have to do is help recapitalize them so that they have a capital base, so that they are willing to lend money."

Perino said the government cannot force the banks to lend money but pointed out that "the banks are regulated by the Treasury Department ... they have every incentive to move forward and start using this money."

Banks, up to now, seem to want to use the money to buy up other banks, presumably those not fortunate enough to have received the blessings of Sec. Paulson's magnanimity.

But now Ms. Perino has reminded them that, while they cannot be forced to load out the money, they are indeed regulated by the Treasury Department. So there!


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