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>> In fact, "the government and taxpayers made a $23 billion profit from the AIG bailout." The results do not justify the process. Would small business owners
by icelancer 9y ago
>> In fact, "the government and taxpayers made a $23 billion profit from the AIG bailout."
The results do not justify the process. Would small business owners be offered the same loans that were unjustifiable based on assets:liabilities? I can answer that for you right now as someone who has cash in the bank to cover a six figure loan but can't get one due to a 690ish credit score: No, they won't.
That we made a profit on (some of the) bailouts doesn't matter. The same process would never be offered to 99.999% of the other citizens of this country.
- q-base 9y agoYou could argue about exposure and banks that failed would have had larger impact on ordinary people than the 99.999%. But I generally agree with your comment.
- mortehu 9y agoYou don't remember the 99.999% being offered unjustifiable mortgages? That was a big part of the financial crisis.
- icelancer 9y agoEr, the banks were bailed out of those terrible decisions. Individual homeowners were left to hold the bag.
- mortehu 9y agoIf you wanted to bail out the home speculators individually, the analogous approach would be to buy their houses at below the prices the speculators had paid, essentially a short sale. Remember TARP bought the assets for close to their realized value, so the loss was already priced in.