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> And don't fall back on 'they were bailed out'. They were bailed out by other banks buying their assets + liabilities, and by the insurance payments they were
by bmitc 4y ago
> And don't fall back on 'they were bailed out'. They were bailed out by other banks buying their assets + liabilities, and by the insurance payments they were making.
Is that true? I'm not sure it is. The U.S. government gave hundreds of billions of dollars direct to banks and other institutions. The total actual cost has been estimated to be around $500 billion, despite claims that the loaned money was all paid back.
https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008 https://en.wikipedia.org/wiki/Emergency_Economic_Stabilizati...
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...
- postexitus 4y agoLet me correct that for you. "The total actual cost has been estimated to be around $500 billion, though to be frank the loaned money was all paid back."
- bmitc 4y agoThat quote appears nowhere in the linked MIT Sloan article or the paper it summarizes, so please don't post such misleading quotes. As I already mentioned and from the paper's abstract: > Those conclusions stand in sharp contrast to popular accounts that claim there was no cost because the money was repaid, and with claims of costs in the multiple trillions of dollars. So to be clear, the paper claims there was still a cost of $500 billion even though money was paid back.
- deleted 4y ago[deleted]
- postexitus 4y agoI highly recommend you to check the original source referred in that article to understand the methodology used and what they were referring to. https://gcfp.mit.edu/wp-content/uploads/2019/02/BailoutsARFEConferencePresentation.pdf https://gcfp.mit.edu/wp-content/uploads/2019/02/BailoutsARFE...