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November 3, 2009 (LPAC)—CIT Group, a 101-year-old lender to small and medium-sized businesses, filed for bankruptcy yesterday. The firm listed assets of about $71 billion and liabilities of nearly $65 billion, making it the fifth-largest bankruptcy in U.S. history. The failure of CIT was no surprise, as its troubles were well known.

The real story here is that the bailout swindle has failed—there is no recovery. The only thing keeping the banking system afloat at this point is a gigantic fraud, in which selected institutions are kept from failing by accounting fraud, theft, and capital injections. Though CIT was given a $2.3 billion injection from the TARP last November, and allowed to become a bank holding company, the decision was ultimately made to let it fail. But even that is only part of the story, since what really caused CIT to fail, is that the global financial system died and the economy collapsed underneath it. The argument is made that we're in a "credit crunch," and that the failure of CIT will hurt its millions of customers, but that's not really the issue. In a debt crisis, you do not solve the problem by piling on more debt, a policy which is akin to giving a junkie another fix instead of helping him kick his habit.

The failure of CIT was caused by the failure of the U.S. government to implement the LaRouche Plan and put the financial system into bankruptcy reorganization, writing off the mountain of unpayable, speculative, debt that is choking the economy. Instead, under orders from the Anglo-Venetian financial empire, our government and the Federal Reserve chose to try to save that debt, by taking it out of the hides of the people of the United States and the world.

The only way to save lenders like CIT, and the customers upon which they depend, is to fix the economy. That means the LaRouche Plan. There are no substitutes.