Tuesday, December 09, 2008


The other interesting story in Illinois right now.

An hour ago the Wall Street Journal reported that Bank Of America has offered to extend additional credit to Republic Windows and Doors so that it can pay the laid-off workers their severance, vacation, and sick pay. Obviously this is not something the bank is legally obligated to do and it seems extremely unlikely that they are going to get a cent of that loan re-payed. I feel happy for the workers, and inspired by the outpouring of support they received, but also vaguely unsettled by the actions of a bank that isn't behaving like a bank. If banks can no longer cut off credit to companies that can't pay them back, are they going to need another bail out in 6 months?


Valerie said...

I don't understand how the government can bail out some company's and not help other company's that need help just as bad. Either help every company that needs help or don't help any of them. It doesn't seem right or fair. That the government picks and chooses who they want to help out and who they are not going to help out, while spending our tax dollars and adding to the national deficit while they are at it. I don't think I will ever truely understand our government and the way that they run it.

Kimberly Cangelosi said...

I guess it's the old trickle down idea, but that assumes that most people are not fundamentally, intractably greedy, and I'm beginning to doubt that assumption.

A side note to this story - Bank of America just laid off a bunch of people today. If I was one of them I'd be annoyed that BofA was paying sombody else's employees vacation pay and handing me a pink slip.