Where do the bankers spend the government money?

US government was more than eager to provide 700 B$ for the criminal failure of the banking industry. In contrast the US senate is not willing to support the automotive industry with a couple of billion dollars. The reason is pretty simple – everybody who looks at a car of GM, Ford and Chrysler can easily see that their cars are not competitive. The banking products secured by the huge government loans and guarantees are not competitive either. However, because most people including politicians know much less about banking than cars, they willingly follow the banking managers. The “new” money given by government to the banks will first be used to get rid of banking employees with amazingly high salaries. The average salary at a typical German investsment bank was about 700 k$ including clerks and secretaries. US bankers commanded much higher salaries. Now most of these people are laid off with a nice handout of two to three times their yearly salary. Now it turns out that the profits they showed in the past were virtual but the bonusses they cashed in were very real. For sure ese golden handshakes are paid by the taxpayer. The poor workers at GM, Ford and Chrysler will probably not see golden handshakes when they are laid off.

Interesting to note, what bankers are doing right now with their money. They do not longer buy “banking products” or expensive and overprized real estate but try to convert their private robbed money to real assets. They now shop around and buy small and midsize companies with real assets. It comes handy that the bankers have cut the money supplies of smaller companies and got them into financial trouble . The bankers know very well which companies have a solid undervalued business.. Now you can buy good real economy companies for much less money than a year ago. Financing these deals is rather easy because they pay almost no interest on money they need to finance the deals. It would be a surprise of all the tricky guys in the banking industry would be converted within weeks after the financial saints. They are still out there and cash in your money thru government which is much easer than getting it directly from you!  Probably only Saint Anthony can help: “Saint Anthony, Saint Anthony, please come around. Something is lost and cannot be found.”