No matter how you feel about bailouts, it’s fascinating to watch the disparate treatment being given to bankers and automakers.  The automakers were run out of DC on a rail when they asked for a small fraction of what the robber barons on Wall Street got.  Even Democrats, a partially owned union subsidiary, told the automakers to come back with a plan for profitability.

But none of that applies to the banks.  The Treasury Secretary and Fed Chairman take the hard Hill grillings for them.  And did somebody say wait for the money?  You must be joking.  If you’re Citigroup, they’ll cut you a 2nd cash infusion and 100s of billions in guarentees on crappy assets over the weekend.  Reorganize?  Punish managment?  Fools errands.  The Feds didn’t insist on any management or structural changes to the Citi organization while putting the taxpayers on the hook for 100s of billions.  Apparently, Hank Paulson’s famous Goldman Sach’s deal making skills don’t apply when it comes to taxpayer dollars either as he only “wrestled” some preferred stock out of Citigroup.

So, when it comes to the banks, our government will socialize infinite losses because systemic market risk means we’ll all be eating cat food soon.  On the other hand, the automakers can go bankrupt and reorgnize.  I’m against the bailouts, but there’s no doubt in my mind that we’re playing favorites here and that the Feds are way too cozy with the Wall Street robber barons.