Corruption is an inevitable and predictable consequence of the marriage between government and the private sector. The hands-off approach would have simple, and simply effective. Irresponsible companies would go bankrupt. Responsible ones would survive.
“Rather than using federal bailout money to reinvigorate lending to consumers, some banks that received funds from TARP have spent it on questionable items that have done little to improve the health of the country’s financial sector but have certainly helped out foreign economies such as Dubai and China.
For instance, Citigroup Inc, which received $50 billion in Troubled Asset Relief Program funds, made an $8 billion December loan, not to an American entity, but to a Dubai public sector company, according to a newly released Monday memo by Rep. Dennis Kucinich (D-OH), chairman of the House Domestic Policy Subcommittee.
The Goldman Sachs Group, which received $10 billion in TARP funds at the end of October, saw fit to spend $2 billion earlier in the year on the repurchase of company stock, which resulted in an increase in company share price.” (Read more from rawstory.com)
See Also: More Evidence Feds Don’t Know What the Hell They’re Doing in Bank Bailouts