CNBC says next Wall Street bailout is coming

I already feel sick to my stomach. There is no way Congress – Democrats or Republicans – will have the backbone to include strings about bonuses as they should. It’s going to be another cave with the tired old “there was no time” lie that they used the last time. If anything, the Democrats ought to punt this heaping pile of crap to the GOP (who created it) and let them deal with voter anger. But of course, we’re talking about the Democrats here who won’t miss an opportunity to find a way to be blamed for a Republican problem.

Wall Street doesn’t deserve any help, financial or legal, but that won’t stop Washington from dealing dope to the biggest addicts in the country. CNBC:

The put-back crisis is not driven by economics. It is driven by legal rights. And there’s simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue.

So here’s what I expect will happen. The lame duck session of Congress will pass a bill that essentially papers over the misdeeds of the banks that originated mortgage securities. Every member of Congress and every Senator who has been voted out of office will cast a vote for the bill. And the President will sign it.

Will the public be outraged? Probably. Financial bloggers will scream from the high heavens against another bailout of the banksters. Congress may try to create some cost for banks in exchange for the forgiveness, perhaps requiring more mortgage modifications.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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