How Citigroup's Payback Plan Will Ultimately Screw Taxpayers
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"We've created the worst conceivable world," says Black. "They can take the most insane risks, and if they succeed, they get to keep all the profits. And if they fail, it's even worse! We bail them out, and we don't make them pay a serious price. They're back in power, completely unrestrained, within a year. And they can now raise the capital because of this implicit guarantee. We have achieved the epitome of crony capitalism."
Zach Carter writes a weekly blog on the economy for The Media Consortium. His work has appeared in The American Prospect, The Atlanta Journal-Constitution and on CNBC.