U.S. banks receive a taxpayer subsidy worth $83 billion a year has generated some, um, discussion. It's a big number, and the subsidy is a big issue for the banks. How did we get there? To recap, the largest banks can borrow money at a lower rate because creditors assume the government, on behalf of taxpayers, will rescue them in an emergency.
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But patrick, we had to bail out the 1%, and at such small costs, we should all be thankful,,,this was a bargain
Just imagine how much worse off everything would be right now, had we not saved the system?
That particular subsidy is in addition to $1T/year of QE, plus ZIRP, all to prop up the malefactors that bankrupted the institutions they had been entrusted to run. If you prop up the one group of people who have proven they can't run a bank, and keep them in charge of everything, it would be insane to expect better economic results. I liked the comments below the article, from people praising their local community banks, where they got better rates than at the TBTF banks.
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