The Pull Peddlers

The article below reports on one of the key reasons why the bank bailout is failing and will continue to fail.

When the government distributes money, it does not do so on the basis of economic calculations—not even bad economic calculations. Instead, it distributes the money on the basis of political expediency, in an attempt to placate various pressure groups.

See, for example, Massachusetts Representative Barney Frank's admission that he engineered a Treasury bailout of a small Boston bank because it was owned by blacks.

The whole article describes how the Treasury Department's disbursement of hundreds of billions of dollars is degenerating into a contest between the congressional delegations of various states to see who can pressure the Treasury to send home the most pork-barrel money...

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