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Some of the bailout loans might break even, but this is only some of what is going on. The paycheck protection loans get forgiven and are essentially just handi

Some of the bailout loans might break even, but this is only some of what is going on. The paycheck protection loans get forgiven and are essentially just handing out money (with the caveat that it goes to labor costs). We also handed out $210 billion in tax cuts which is just a handout. On the whole the fed's balance sheet actually went up by 4 trillion dollars during the 2008 recovery [1] even though the loan program was less than 1 trillion. There is a trillion dollars of mortgage backed security purchases there that are a less visible bailout. The fed has already added 2 trillion this time with more to come. [1] https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...

koheripbal 6y ago
In 2008, the US Gov't made hundreds of billions on the bailout loans they gave. Let me make that clear. Whenever people say "Wall St was bailed out by the taxpayers", they don't understand finance well enough to know that the taxpayers actually earned a significant PROFIT from that bailout. ...and naturally the media doesn't report on that important detail. "socialize the losses, privatize the gains" is a slogan based on complete ignorance.
- gammarator 6y ago
  Since at least some of those companies were insolvent, the US taxpayer would have been better compensated if the companies had been nationalized instead. Wiping out the existing shareholders avoids moral hazard in the future as well.
- rbrtl 6y ago
  MIT Distinguished Professor of Finance, Deborah J. Lucas, who is also the director of the Golub Center for Finance and Policy would disagree with you: http://gcfp.mit.edu/wp-content/uploads/2019/02/BailoutsV12.pdf http://gcfp.mit.edu/wp-content/uploads/2019/02/BailoutsV12.p... She's done research and cites evidence. You CAPITALISE basic terminology to patronise people out of wanting to challenge you.

koheripbal 6y ago

In 2008, the US Gov't made hundreds of billions on the bailout loans they gave. Let me make that clear. Whenever people say "Wall St was bailed out by the taxpayers", they don't understand finance well enough to know that the taxpayers actually earned a significant PROFIT from that bailout. ...and naturally the media doesn't report on that important detail. "socialize the losses, privatize the gains" is a slogan based on complete ignorance.

gammarator 6y ago
Since at least some of those companies were insolvent, the US taxpayer would have been better compensated if the companies had been nationalized instead. Wiping out the existing shareholders avoids moral hazard in the future as well.
rbrtl 6y ago
MIT Distinguished Professor of Finance, Deborah J. Lucas, who is also the director of the Golub Center for Finance and Policy would disagree with you: http://gcfp.mit.edu/wp-content/uploads/2019/02/BailoutsV12.pdf http://gcfp.mit.edu/wp-content/uploads/2019/02/BailoutsV12.p... She's done research and cites evidence. You CAPITALISE basic terminology to patronise people out of wanting to challenge you.