Video: Bank Bailouts Explained
Just like in the Quantitative Easing Explained video, this one on the bank bailouts gets down to brass tacks. It strips away all the government propaganda that taxpayers profited from the bailouts by revealing some of the many backdoor bailouts banks have received. Even today, with short-term interest rates at zero percent, banks are still getting a massive back door bailout from the Federal Reserve, while savers are penalised by getting nothing.
For examples of the back door bailouts, choose any of the following posts:
- The nationalization of America’s mortgage problem, Sep 2008
- Quote of the day: Nationalized banking predators, Oct 2008
- Capital One buys Chevy Chase Bank: Another bailout freebie, Dec 2008
- Bank of America: Bailout hides huge bank subsidy deep in press release text, Jan 2009
- TALF: A bailout if one reads the fine print, Feb 2009
- How big banks earned so much money this quarter, Apr 2009
- Insurance companies now feeding at the TARP trough, May 2009
- GMAC gets a helping hand, May 2009
- Some banks not paying TARP dividends, Oct 2009
- TARP was sold to Americans under false pretenses, Oct 2009
- What would an alternative to bailouts have looked like?, Nov 2009
- U.S. forfeiting billions in future taxes to let Citi repay TARP, Dec 2009
- GMAC in line for another $3.5 billion in bailout money, Dec 2009
- The smoking gun in the AIG – Geithner cover up, Jan 2010
- Tim Geithner impersonates Jack Nicholson… again, Jan 2010
- Black and the AIG cover-up of the cover-up of the cover-up, Jan 2010
- Chart of the day: Clusterstock – How the AIG bailout worked, Jan 2010
- Are the housing bailouts for banks or borrowers?, Apr 2010
- Some Thoughts On The Fed and Bank Bailouts, Dec 2010
There is substantial evidence that the bailouts were not just via TARP and not just banks benefitted. There were numerous ways government hid bailouts and bank subsidies in order to present a favourable picture. The posts above identify some of this. Despite the propaganda machine’s attempts to label TARP a success, it was not.
About Edward Harrison
- Video: Quantitative Easing Explained 12 Nov 2010
- Video: Quantitative Easing Explained: The Remix 29 Dec 2010
- Some Thoughts On The Fed and Bank Bailouts 1 Dec 2010
- Asymmetric information and corporate governance in bank bailouts 19 Jun 2009
- An update on asymmetric information and corporate governance in bank bailouts 21 Oct 2010
As cynical as I am, I have to say that line about “too bigger to fail” was pretty funny, but I fell out of my chair with cynical laughter when the little ?rabbit? ?bear? ?raccoons? ….. what are those things???
said, “What did the Goldman Sachs buy?”
“Nothing. Because when you own the US government you don’t need to buy a bank.”
He does have a way with words. Sometimes you need a good laugh.
As cynical as I am, I have to say that line about “too bigger to fail” was pretty funny, but I fell out of my chair with cynical laughter when the little ?rabbit? ?bear? ?raccoons? ….. what are those things???
said, “What did the Goldman Sachs buy?”
“Nothing. Because when you own the US government you don’t need to buy a bank.”
He does have a way with words. Sometimes you need a good laugh.
Would be interesting to see what these little critters have to say about the suspension of m2m. I think that was the biggest bailout of them all.
The m2m change was the critical one and the one which could be the undoing of this brief Nirvana. Unless house prices rise before the next downturn, we are going to see a lot of mortgage losses irrespective of the accounting.
Would be interesting to see what these little critters have to say about the suspension of m2m. I think that was the biggest bailout of them all.
The m2m change was the critical one and the one which could be the undoing of this brief Nirvana. Unless house prices rise before the next downturn, we are going to see a lot of mortgage losses irrespective of the accounting.
Hmmm… Do these bailouts correlate to the statistics on US wealth soaring between 2008-2011? I ask rhetorically. US millionaires grew by 33% (6.7-9.9 million) during this period with the average wealth in the neighborhood of 30 million. The US currently has 41% of the world’s millionaires within her borders this occurring while approximately the same number of the population (8-10 million) is just hoping to find employment. When you look at billionaires the numbers are just as shocking with the US having 403 and proportionally more than any other country by far. If this isn’t the most prolific oligarchy in the world I would be very surprised and it’s all been perpetuated by easy money policies like TARP.
Yes, we all like a good laugh but I think anger is the more appropriate emotion in this situation. I think it’s high time the American majority moves beyond denial or disassociation and shows the appropriate emotional response to our government’s actions.
http://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires
Hmmm… Do these bailouts correlate to the statistics on US wealth soaring between 2008-2011? I ask rhetorically. US millionaires grew by 33% (6.7-9.9 million) during this period with the average wealth in the neighborhood of 30 million. The US currently has 41% of the world’s millionaires within her borders this occurring while approximately the same number of the population (8-10 million) is just hoping to find employment. When you look at billionaires the numbers are just as shocking with the US having 403 and proportionally more than any other country by far. If this isn’t the most prolific oligarchy in the world I would be very surprised and it’s all been perpetuated by easy money policies like TARP.
Yes, we all like a good laugh but I think anger is the more appropriate emotion in this situation. I think it’s high time the American majority moves beyond denial or disassociation and shows the appropriate emotional response to our government’s actions.
http://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires