Bailout Barack Passing Out Cash To Fat Cats

Candidate Obama criticized policies based upon the notion that if you "give more and more to [those with] the most, and somehow prosperity will trickle down." President Obama has been handing out trillions.

Moody's credit rating agency last week downgraded Bank of America, Citigroup and Wells Fargo, judging that if any of these banks failed, the probability of a federal bailout "is lower than it was during the financial crisis." Good news, right? But then there was this passage: "Moody's continues to see the probability of support for highly interconnected, systemically important institutions in the United States to be very high. ..."

In other words, a bailout has gone from certain to only very likely. Regarding Citigroup, Moody's wrote, "The holding company's long-term senior debt ratings now incorporate two notches of uplift due to systemic support, down from three notches previously." Translated: Citi's big lenders are still charging lower interest rates because they're still counting on a taxpayer bailout if Citi falters. Citi, then, is still profiting from a presumptive bailout. Moody's judgment was similar for Bank of America and Wells Fargo.