Withholding Information?

" It's hard to live that long though about one year ago the federal government kicked off the TARP program none of the TARP program. Lending Bank of America and eight other financial institutions an initial. 125. Billion dollars so where are we since then Treasury Secretary Paulson told Americans at that time that those banks were quote. How -- take a listen."

" These are healthy institutions. And they have taken this step for the good of the US economy. As she's healthy institutions to increase our capital base. They will be able to increase their funding to US consumers and businesses."

" Ties to the trade secretary said they told everybody that banks were just fine. That they were gonna help and make the economy recovering now that a new report from the inspector general has been looking into all of these. -- situations and he claims that we really did not get the whole story. Liz MacDonald is the FB and -- stocks editor and Brian Wesbury chief economist for first trust advisors. LP and the author of it's not as bad as you think like capitalism trumps fear and the economy all rise. Welcome to both of you at you know little what I did this story at dot. Not a surprise to me everybody knew that that the situation was dire her. So what's in just a problem with the language in the way that they said it that they insinuated that every one of those nine banks was quote."

" Healthy you know what -- some of the banks. You know most of the banks are healthy some of them are bad really really sick. They knew there was a problem when Bear Stearns collapse in the spring in fact Henry Paulson Ben Bernanke at that time wanted to go to the government to ask for money for bail out money. And for -- sorry to wind down institutions like Bear Stearns didn't have that authority and frank in fact you know Henry Paulson said. Behind the scenes said because it did not have the authority the authority to you until the markets that they don't wanna do -- have a run on the banks. Get ignited they knew where they've basically sexy -- look you don't want to tell the marketplace -- the government has. That the emperor essentially has no clothes. Did you do not want to spark a -- you can have all the bank capital world -- the only candidate I think -- I think I'm that they live for a good reason -- basically that safe fudge the truth Burton -- because trying to get."

" I guess so yeah I'm Brian -- that this is well yeah Brian I mean if they had gone out there and I don't necessarily agree with the argument of the way they did things at all actually but they know we can get right out of today but just on the feasible -- right here if they had come out and said. You know the JPMorgan and that I get Goldman Sachs pretty dead at Merrill on the brink of disaster. That the cause a lot of problems and probably Iran on at least one if not more banks."

" 888 would end but remember to. Well first they won't say anything like that they biggest there's no money in it for them in a way they're just it just doesn't work for them. But the second thing is is that nobody really knew remember these markets work. Absolutely ill liquid last year prices were for for things that had cash flow had fallen to twenty or thirty cents there were no bids in some cases. So you could actually say that a that a certain institution was. Bankrupt when in reality the cash flow from its. What they don't -- was still there I I I still believe what they should've done was change the accounting rules. Kind kind of do what we did in the early 1980s. And allow these banks to -- operate give them some time. Without putting so much pressure on them right away and putting the government and hundreds of billions are dollars that risk."

" Right away yes don't people wake up and they look at the Internet they look at different news sources and they say you know there's this big picture of Bernanke and Paulson and it says they -- a pact will list. What are we supposed to take away from that. Is that is that true Oprah did they -- the American people and it's so debate you know should they should charges be brought against bush and no -- in any restitution -- I think what we're."

" And is saying it's right I mean -- end lives but -- they didn't know that the situation was that much more dire than they let on because again they want to keep the system healthy. They didn't want a run on the bank that was key because remember that big the first -- the country's first money market fund have broken the buck the reserve fund that was really terrifying for government regulators and government regulators are slump. Mechanism that they have to search the balance sheets of these banks where you know you see pot holes the size of the gross domestic product. Of Libya at some of these banks Shirley BankAmerica and Citigroup were definitely on the ropes and Barney franks said the notion that he went into the eleventh hour -- of something terrible an inning that turned to the Federal Reserve and the treasury to help other banks that's not the way you run things in a democracy the fear at that time though -- run on the banks that was the key to stop that."

" Yet you know right -- pilot -- Bryant -- it out it tactic that what we should take place finish in because the American people say well we relied -- But was this a case where they needed to be lied to it was all about market psychology at this point right. About provide some complex at."

" God that's exactly what. I still go back and I think if there was any. -- station are true lying it was about the role of accounting rules."

" In driving us down I think the government."

" Kind of one of the banks on the heels on their heels a little bit they wanted to and in the corner so that they could invest in them and be the heroes that save the day. That's where I really think that we bid if we've been -- this idea that -- government can fix problems it it can't it makes problems worse."

" And I think the more the government got involved the worst things McCain and USEC had a W say in things were never as bad as we're grateful if right. Now they they they weren't it was this was."

" Literally a problem we had a couple hundred billion dollars worth of losses and in sub prime loans and alt -- loans. And we turned it into a catastrophe. With mark to market accounting and that all of this government involvement. I will go to my grave would not understanding how conservatives. And liberals all got together and just one of the government to grow last year it just still amazes me to this point list -- seven million homes are in for closer so bad is this enough to tanking economy."

" Short term long term we don't know how dire that will be the effects of that. But the government lets face it they knew the problems are bad who Bear Stearns you know collapse and the spring in the spring of 2008. Thanks guys for some doesn't happen again that -- to look back in this."