Real cost of US bank bailout: $7.7 TRILLION

[Skwink]

Could this hurt Obama politicly?

 

[Cutlass]

Could this hurt Obama politicly?

No. Because it's bullpoo so deep that the only people who would buy it are already going to vote for whoever the Republican is.

 

[Dida]

And given that he is the most trusted voice in news, here's Jon Stewart in his daily show:

So, the banks cause economic disaster, let the state save their sorry backsides, and make a killing out of the process. While raising all kinds of fees for customers, of course.

And none of the guys responsible are behind bars ...

Watch Jon Steward for a laugh once in a while but don't take him too seriously. Lately I found him to be less than funny in many ways. He's been completely outdone by Colbert in that department although both remain equally unreliable as source of good information.

 

[Integral]

I covered this already

I am not paid enough to deal with this willful stream of defecation into the public information pool.

Edit: Theige wrote a good post.

 

[DirtyFinger]

Watch Jon Steward for a laugh once in a while but don't take him too seriously. Lately I found him to be less than funny in many ways. He's been completely outdone by Colbert in that department although both remain equally unreliable as source of good information.

However, a recent poll showed that viewers of the daily show are much better informed about current events than fox news viewers. ok, not because he delivers more news than fox but because despite his comedy he's not bullshitting people.

 

[Dida]

However, a recent poll showed that viewers of the daily show are much better informed about current events than fox news viewers. ok, not because he delivers more news than fox but because despite his comedy he's not bullshitting people.

Tell me again what your point is exactly?

 

[JerichoHill]

Integral,

Nice job yet again point out fact. This is something making its rounds on reddit as well.

 

[DirtyFinger]

Tell me again what your point is exactly?

erm, maybe that he actually is a good source of information?
or at least, that viewers of the daily show also happen to be among the more informed people?

i thought that was clear.

 

[Stephanovitch3]

It's quite sad to see civilisation crashing to the floor face down in the mud down to ignorant politicians, greedy bankers and an unwilling majority hoping to change it. America states in its constitution that another political party can be set up. However it would be far to expensive to even contemplate. Bankers and their *****es (Politicians) have neglected a peaceful and just protest to greed, unfortunately violence is always the answer.

I can't see governments of America and Asia and Europe lasting much longer. The economy is ruined.
Sorry for the preaching but I hate government

 

[Integral]

Integral,

Nice job yet again point out fact. This is something making its rounds on reddit as well.

Yeah, I actually first found the OP claim on r/economics but had no willpower to debunk it there. Responses longer than 50 words are beyond my personal cost-benefit margin on Reddit.

I really need to get a blog and dump all of my long posts there, it's more respectable...

 

[Zelig]

I am not paid enough to deal with this willful stream of defecation into the public information pool.

I stopped following the news. I recommend it.

 

[Ayatollah So]

Has anyone told you guys? You need a Labour Party, a Green Party and some real social liberals.

You mean like Greece and Spain - the Socialist governments that got kicked out for giving in to too many demands of the banksters?

And there wasn't any "cost" associated with this lending; we (the Federal Reserve) actually made a profit. And that profit goes back to us (the federal government)

Get real - seriously - as in, correct for inflation. Or better yet, correct for the interest that the banks made by investing in US treasuries. Taxpayers lost big on the deals.

 

[innonimatu]

Get real - seriously - as in, correct for inflation. Or better yet, correct for the interest that the banks made by investing in US treasuries. Taxpayers lost big on the deals.

But that was half the purpose purpose of the exercise: stealth recapitalization of the banks. And it guaranteed the other half: creating money for state spending without admitting to it.

 

[Theige]

It isn't stealth at all.

The Federal Reserve was created, above all else, to stabilize the financial system. When the financial system is on the verge of failure, the Federal Reserve is there to make sure it doesn't. This is in everyone's interest.

The Fed isn't there to make a profit. It still does, however, making about $80 billion dollars for the U.S. government last year. Could it make a lot more? Undoubtedly. But that isn't what it's there for.

As to inflation; it was relatively low last year, and regardless, it doesn't apply to this conversation.

For comparison, the most profitable American bank was JP Morgan, which was $17 billion in the green.

 

[Ayatollah So]

The Federal Reserve was created, above all else, to stabilize the financial system. When the financial system is on the verge of failure, the Federal Reserve is there to make sure it doesn't. This is in everyone's interest.

Yeah. But there are ways and there are ways. Enforcing rules before asset lies propagate, for example. Putting insolvent banks into receivership.

 

[Theige]

But the Fed isn't in charge of enforcing the rules

 

[Ayatollah So]

Investopedia says:

Regulator and Supervisor
The Federal Reserve Board has regulatory and supervisory responsibilities over banks. This includes monitoring banks that are members of the system, the international banking facilities in the U.S., the foreign activities of member banks and the U.S. activities of foreign-owned banks. The Fed also helps to ensure that banks act in the public's interest by helping to develop federal laws governing consumer credit. Examples are the Truth in Lending Act, the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act and the Truth in Savings Act. In short, the Federal Reserve Board acts as the policeman for banking activities within the U.S. and abroad.

Policeman, hmm. Sounds pretty enforce-y to me.

 

[Cutlass]

Investopedia says:


Policeman, hmm. Sounds pretty enforce-y to me.

Whatever the legal authority, it doesn't matter if it isn't actually in use.

 

[Defiant47]

If I borrow $100 dollars from you every morning and repay it later every evening, then over a year, you will have given me a bailout worth more than $35,000.

 

[Integral]

Jim Hamilton demolishes the $7.7 trillion argument

It's slightly more nuanced than the rebuttal I gave above.