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"Barack Obama says banks paid back all the federal bailout money" https://www.politifact.com/factchecks/2012/oct/25/barack-obama/barack-obama-says-banks-paid-b
by aantix 7y ago
"Barack Obama says banks paid back all the federal bailout money"
https://www.politifact.com/factchecks/2012/oct/25/barack-obama/barack-obama-says-banks-paid-back-all-federal-bail/ https://www.politifact.com/factchecks/2012/oct/25/barack-oba...
- Retric 7y agoOpportunity cost, the banks in no way payed out what that money was worth at the time. Hand me 1 billion interest free for 5 years and sure I will pay the money back, but...
- yyy888sss 7y agoYes but assuming bankruptcy would have actually destroyed the US economy (highly debatable) then it was a low cost measure.
- vonmoltke 7y agoIt was not interest-free: https://projects.propublica.org/bailout/list https://projects.propublica.org/bailout/list
- Retric 7y agoAs that points out, not all loans where paid back. The interest from those that did result in a nominal profit, but it’s far from what private lenders received for loans in that time period. Thus opportunity cost, as it was a poor investment which is why it was called a bailout.
- aantix 7y agoIf they had other opportunities at higher rates, they would have lent at that rate.
- yohannparis 7y agoTrue, but still mean that the people bail them out. So the taxpayers soften the blow with a loan... Maybe let the companies go down, and give a loan to the taxpayers instead.