Friday, February 06, 2009

Bailouts: Money is Fungible!

We recently read that politicians were concerned that the government had provided a large amount of bailout funds to CitiGroup, while that financial institution planned to spend $400 million over 20 years for naming rights at the New York Mets' new ballpark. Lawmakers did not want government funds to subsidize the purchase of these naming rights at a baseball stadium. The bank responded that bailout funds were not being used to pay for the naming rights.

CitiGroup is not alone here in responding to such questions from lawmakers. We have heard a number of other questions raised about the activities of various banks. Time and again, we hear banks respond that bailout funds are not being used for this or that activity that is being questioned.

What's wrong here? The banks seem to be forgetting that money is fungible! It's not as if the money raised from private investors cannot be easily substituted or exchanged for the money that's coming from the federal government. There's no difference in those dollars! With limited resources, the banks are making tradeoffs every day about where to put there money. Any dollar dedicated to one activity must mean one less dollar that could be used for another activity. Now, I'm not suggesting that the federal government should intervene and micromanage bank activities. I'm simply say that it's difficult to argue that "bailout funds aren't being used for x, y, or z." When money is fungible, it's hard to make such claims.

4 comments:

Affordable Luxurious Wedding Dress Blog said...

cheap wedding gowns,
discount bridal gowns,
China wedding dresses,
discount designer wedding dresses,
China wedding online store,
plus size wedding dresses,
cheap informal wedding dresses,
junior bridesmaid dresses,
cheap bridesmaid dresses,
maternity bridesmaid dresses,
discount flower girl gowns,
cheap prom dresses,
party dresses,
evening dresses,
mother of the bride dresses,
special occasion dresses,
cheap quinceanera dresses,
hot red wedding dresses

asdfsadf said...

nike shoes, jordan shoes, nike dunks, nike air force 1, nike shox, nike shoes, nike shox, nike dunks, nike air force 1, nike shox, nike shoes, nike shox oz, nike shox nz, nike shox r3, nike shox r4, nike shox r5, nike shox tl
nike air force 1










nike Air Force 1, nike shoes, Jordan shoes, nike sb dunks, cheap nike Air Force 1, cheap nike shoes, cheap Jordan shoes, cheap nike sb dunks, discount nike Air Force 1, discount nike shoes, discount Jordan shoes, discount nike sb dunks, nike shoes, nike shox, nike dunks, nike air force 1, jordan shoes, nike shoes, nike shox, nike dunks, nike air force 1, jordan shoes












nike shoes, nike shox, jordan shoes, puma shoes, nike dunks, nike air max, nike air force one, timberland boots, ugg boots, nike shoes, nike shox, nike air force 1, nike sb dunks, puma shoes, nike air max, jordan shoes, ugg boot, jordan sneakers, timberland shoes, bape shoes, nike shoes, nike shox, nike dunks, nike air force 1, jordan shoes

season said...

Once upon a time, there was a mouse father.He wanted to marry his daughter to the greatest person in the world.But, who was the greatest person in the world?Oh!
puma ferrari shoes
cheap nike shoesThe sun! He must be the greatest person in the world.The mouse father went to talk to the sun."Hello! Mr. Sun.
puma shoes
ferrari shoes
I know you are the greatest person in the world.Would you marry my daughter?""What? I'm not the greatest person in the world. The greatest person is the cloud.If he comes out, I’ll be covered."
nike shox nz
Ugg Boots
The mouse father went to talk to the cloud. “Hello! Mr. Cloud. I know you are the greatest person in the world. Would you marry my daughter?”
nike 360 air max
nike shox shoes
“What? I’m not the greatest person in the world. The greatest person is the wind.If he comes out, I’ll be blown away.”
cheap puma shoes
puma drift cat
The mouse father went to talk to the wind. “Hello! Mr. Wind. I know you are the greatest person in the world.Would you marry my daughter?” “What? I’m not the greatest person in the world. The greatest person is the wall. If he comes out, I’ll be stopped.”
cheap nike shox
nike air max 360
The mouse father went to talk to the wall. “Hello! Mr. Wall. I know you are the greatest person in the world. Would you marry my daughter?” “What? I’m not the greatest person in the world. The greatest person is YOU, the mouse.” “The greatest person in the world is … mouse?” “Yes, the greatest person in the world is mouse. See? If mouse comes out, I’ll be bit!”
nike air max
pumas shoes
The mouse father was very happy. He finally knew mouse was the greatest person in the world. He would marry his daughter to the handsome mouse next door.
cheap jeans
cheap levis jeans
ed hardy jeans

feiyang said...

After read your blog, I think you are a wonderful person, for your blog is the best one I have ever seen. If you do not mind, I would like to know do you like fashion? Have you ever heard of polo shirts, which are very chic, especially the polo t shirts, I love them very much. I also like playing tennis rackets, it can keep healthy, what do you like to do? I consider it as my great pleasure to introduce myself as the outlet of polo t shirts women
polo t shirts on sale
and the warmly welcomed
polo t shirts for women
Now. I'd like to introduce our masterpieces, such as
polo shirts on sale
polo shirts men
men's polo shirt
men polo shirt
mens polo shirts
mens polo shirt
besides we also sell
cheap polo shirts
discount polo shirts
men's polo shirts
women's polo shirts
Which are popular with fashinable people. We are also the outlet of
cheap tennis racket
discount tennis racket
in this sporty season, we recommend
prince tennis racquet
head tennis rackets
wilson tennis racket
babolat tennis racquet
There more new products in our store online, we are expecting you to come. We can say that you must find your satisfied things in our store.