So Long 2.33 Billion Dollars, It Was Good to Know You

[Michael Earner]

CIT Group Inc. announced today that it would file for Chapter 11 Bankruptcy Protection.

Okay, weren't we told that that one of the reasons we had to bail out these banks was that some of these banks were too big to fail? Weren't we told that chapter 11 wasn't a viable option for such large banks? So we bailed out tons of these banks though the TARP. CIT Group received 2.33 billion dollars. Now CIT Group, Inc. has to claim Chapter 11. Even though they have approximately 71 billion dollars in assetts, apparently they have managed to run up 64.9 billion dollars worth of debt. The end result is we can now say goodbye to 2.33 billion dollars of taxpayer's money. Kudos to everyone for managing OUR money so well. What next should we do a "Live Aid" concert to raise money for these poor struggling bank executives? If we do this, I think Willie Nelson should headline, make Willie work off some of the 16.7 million dollars he owed the IRS. Whatever happened to the days of making a mistake but having to pay for the consequences?

[tamo42]

This is the completely unsurprising result of any government intervention in a market.  Mises told us 100 years ago that governments necessarily distort the market such that any intervention will require more and more intervention until the whole thing falls apart. 

And if you believe anything the government says is true, I have a bridge in Brooklyn for you :).