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There were multiple stages of bailouts, including Federal Reserve asset purchases which directly transferred resources from dollar holders to for-profit shareho
by pirate787 5y ago
There were multiple stages of bailouts, including Federal Reserve asset purchases which directly transferred resources from dollar holders to for-profit shareholders and bondholders. The Fed's intervention dwarfed the TARP bailout and is the largely the reason TARP was successful...they moved the economic loss from Treasury to the Fed.
https://mitsloan.mit.edu/ideas-made-to-matter/heres-how-much-2008-bailouts-really-cost https://mitsloan.mit.edu/ideas-made-to-matter/heres-how-much...
- arcticbull 5y agoThat's not how the Fed works. [edit] (As I replied in a peer comment, increasing the money supply is not debasement or a loss - that is measured from its impact. In the years subsequent to the bailouts inflation hit at some point an annualized -4% before returning to a range of 0-2% going into COVID. Modern economics isn't as simple as "supply up bad.")
- NovemberWhiskey 5y agoYour comment doesn't appear to have much to do with the link you have provided; could you add some more context?