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For all of the pearl clutching about the fear of inflation or the devaluation of bonds, I don't see enough consideration of what happened the last time the mone

For all of the pearl clutching about the fear of inflation or the devaluation of bonds, I don't see enough consideration of what happened the last time the money printer went brrr for TARP. CPI stayed relatively stable, the bond market recovered, the money got (mostly) repaid. TARP ended up being a really smart move, even though it would have been better structured if it included a small business / consumer package. It'd be interesting if this crisis taught us that the harmful effects of monetary creation aren't as harmful as we thought. Looks like it's time to see if this Modern Monetary Theory thing might hold water. It's terrifying but also kind of exciting.

ericns 6y ago
And all the people that fucked us labor class underlings keep their advantages. They're preferential placements to the best schools, the best jobs, helping their friend's kid get a start. It's wonderful. Really fucking wonderful. I love being stuck, being denied the opportunity of advancement because those that are already there were hoodwinked by another black fucking swan. The rage is barely below the surface. Good fucking luck.
selecsosi 6y ago
I think it's important to note that while there were a very high number of repayments, the purpose of that bailout was to transfer asset risk to the larger taxpayer body. Regardless if the initial payment price was repaid, the risk profile still is sitting somewhere. - You value a car on your sales lot on your books: $10,000 - Real value is probably, $5,500, the spoiler and crappy tint doesn't 2x the value - Your car is currently on fire (act of god) so value is scrap - Buddy who runs a bank (you pay on the side because, o this ins't the first on fire car you tried to sell trash for cash) offers you $9,500, a bargin - You are in - 2 years later, pay off bank buddy (maybe political donation) b/c you are the one of the 9 people who can sell cars - Throw press conference because you saved tax payers 10k + horrible risk if I failed - Bank share holders (Tax payers) own pile of scrap he incentives are mismanaged because the calculated risk of a bank failing is evaluated purely on the chaos induced, not the existing status quo which for joe schmoe is crazy but HFT guy can make bank off of (so sold as all upside if you are smart, but is restricted in apparent but fog like ways). Maybe said bank is actually terrible, but we won't know because they are a rise together, never fall together cartel (malicious or not, fact of reality)

ericns 6y ago

And all the people that fucked us labor class underlings keep their advantages. They're preferential placements to the best schools, the best jobs, helping their friend's kid get a start. It's wonderful. Really fucking wonderful. I love being stuck, being denied the opportunity of advancement because those that are already there were hoodwinked by another black fucking swan. The rage is barely below the surface. Good fucking luck.

selecsosi 6y ago

I think it's important to note that while there were a very high number of repayments, the purpose of that bailout was to transfer asset risk to the larger taxpayer body. Regardless if the initial payment price was repaid, the risk profile still is sitting somewhere. - You value a car on your sales lot on your books: $10,000 - Real value is probably, $5,500, the spoiler and crappy tint doesn't 2x the value - Your car is currently on fire (act of god) so value is scrap - Buddy who runs a bank (you pay on the side because, o this ins't the first on fire car you tried to sell trash for cash) offers you $9,500, a bargin - You are in - 2 years later, pay off bank buddy (maybe political donation) b/c you are the one of the 9 people who can sell cars - Throw press conference because you saved tax payers 10k + horrible risk if I failed - Bank share holders (Tax payers) own pile of scrap he incentives are mismanaged because the calculated risk of a bank failing is evaluated purely on the chaos induced, not the existing status quo which for joe schmoe is crazy but HFT guy can make bank off of (so sold as all upside if you are smart, but is restricted in apparent but fog like ways). Maybe said bank is actually terrible, but we won't know because they are a rise together, never fall together cartel (malicious or not, fact of reality)