Another One Bites the Dust

After receiving $2.3 billion in TARP funds from the treasury last year, CIT is history, well until they come out of bankruptcy.  The whole thing is a joke, and so is The Wall Street Journal .  Get this line:

Taxpayers could have lost more, though. Despite likely losing its $2.3 billion investment, the U.S. government saved possibly billions more in losses when it rebuffed further bailout requests over the summer, after concluding CIT's demise wouldn't threaten the broad financial system.

HAHA.  Excuse my outburst of laughter, but I will not insult your intelligence by explaining how stupid such a statement is.  But it does beg the question;  Why are the taxpayer's the ones who will write off their "investment".  Look what is being offered to Carl Icahn and other senior bondholders:

 Under the bankruptcy plan, senior bondholders would trade their current debt for new debt maturing later worth about 70 cents on the dollar. They would get 92.5% of the equity in a restructured CIT.

So why are they being compensated when the taxpayer, who was held at gunpoint to invest funds, is written off with a complete loss?  There is no other way of viewing this than simply a forced taxpayer payout of $2.3 billion to senior bondholders.  For their own good, of course.

The Wall Street Journal is a joke.  They will go bankrupt in the near future too, absent a bailout.  That could explain the pussycat journalism they have shown this last year in the midst of the largest robbery in the  country's history (maybe the world's, I could see the FDR gold confiscation being a challenger to this, though).