You may remember that in the early days of the TARP, people would ask why we were bailing out banks but not Circuit City
, the troubled electronics chain that went bankrupt
in November. They were told then that private sector capitalism would sort it out, and in late December Circuit City got a $1.1 billion loan
, albeit from Bank of America (which shortly thereafter demanded more TARP money
so it could pay for its purchase of Merrill Lynch), and went looking for bidders.
And see how it all worked out? By the terms of its bankruptcy, Circuit City had to find a buyer by today or liquidate, but despite its famous name and Bank of America capital, no one wanted it, so now Circuit City is shutting down and sending 30,000 employees to the breadline. America is back!