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Not in a depression? 1 in 2 Americans are now poor or low income
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2011 Dec 16, 1:49am 23,148 views 101 comments
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What is your point here? Even if the logic behind this point had any merit whatsoever (Which it does not), honestly, what is the point?
Dude, the logic is just arithmetic.
If the federal government can bail out the banks to a tune of $29 trillion, then they could have instead just insured the deposits of $3 trillion.
$29 trillion > $3 trillion
Is that math too hard for you?
If you want to hold on to the flimsy point that the "cost" of the bailouts was $29 trillion, this is going to be easy.
The "cost" of the bank bailouts was zero, because all of those loans the Fed made were paid back, but let's stay on point here.
The Fed loaned $29 trillion to the banks to do many things, one of which was to protect the depositors.
Answer me this: Would you rather loan someone $3,000, of which you would get very little if any back, or loan a total of $29,000 of which you would get every penny back? By the way, when you make that loan the most you will have lent out at any one time is $1,700.
It is foolish at best and dishonest at worst to call the "cost" of the Fed bank bailouts $29 trillion when it was all paid back. The only "banks" that are not paying the government back are Fannie and Freddie, which were taken over by the Government. If other banks failed, they would have been taken over by the FDIC as well. Get it? Taken over to protect depositors = not getting paid back. Loaning to protect depositors with collateral to solve a liquidity crisis but not taking over = get paid back.
Either way, the depositors are protected. One way the cost is zero. The other, the cost is at least $3 trillion. Probably more like $6 Trillion, counting other non-savings accounts.
Dan8267
2011 Dec 20, 3:01am
If you want to hold on to the flimsy point that the "cost" of the bailouts was $29 trillion, this is going to be easy.
Feel free to inform CNBC why their wrong. I'll take their facts over yours because they have a much larger and more experienced research team than you.
The "cost" of the bank bailouts was zero, because all of those loans the Fed made were paid back, but let's stay on point here.
And I should believe your assertion, why? Oh sure, the zero-interest loans of a few hundred billion were paid back, but not the whole $27 trillion. Furthermore, by allowing the banks to take these zero-interest loans and then loan the money back to our government for 5%, the banks have stolen our money as explained in the following video.
http://www.youtube.com/embed/HXNBlb0vsdM
And what did we get out of it? The next video explains...
http://www.youtube.com/embed/yipV_pK6HXw
What you don't get is that all Americans are paying the banks in terms of lost purchasing power so that the banks don't lose money on their bad bets.
So keep believing that protecting massive banks and letting them crush small banks is they way to make America strong. One day, there will be only one bank, and it will answer to no one. Are you looking forward to that day?
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As mentioned in today's links, 1 in 2 Americans are now poor or low income.
Explain to me then, exactly how the Federal Government's efforts to bail out too-big-to-fail banks and prop up housing prices avoided a depression?
50% of the people in our country are below the poverty threshold. Isn't that about the same level as during the First Great Depression?
Nothing the government did avoided a depression. In fact, its actions deepened and prolonged the Second Great Depression. I think we can say definitively, that bailing out the major banks was the wrong thing to do. It destroyed trust and accountability and that prevents future business transactions because all business requires a certain level of trust, and without that trust, no business can be done. Commerce dies.
#housing