Okay, so let me get this straight. Not only were certain banks forced by the powers that be to take TARP money, now that they want to pay it back, they have to ‘prove’ to those same powers that be that they can raise money in the public market. So at first the taxpayers got screwed and now the shareholders of these certain banks get diluted and lose 4% overnight as these banks had multi billion dollar stock offerings.

When will all of this nonsense stop? After all why should these banks have to prove that they can raise money? I thought that the results of the ’stress test’ was proof in the pudding as to the financial situation of individual banks?

If this isn’t further proof of the dangers of government intervention, I don’t know what is. Anyone notice a pattern? Government gets involved in an industry, taxpayers have to foot the bill as billions of dollars are thrown into a black hole, and then the government sets another rule that ends up diluting or in the case of the auto’s, completely wiping out any value that shareholders had.

As usual it’s the little guy that gets screwed!

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