Video: Bank Bailouts Explained

Just like in the Quantitative Easing Explained video, this one on the bank bailouts gets down to brass tacks. It strips away all the government propaganda that taxpayers profited from the bailouts by revealing some of the many backdoor bailouts banks have received. Even today, with short-term interest rates at zero percent, banks are still getting a massive back door bailout from the Federal Reserve, while savers are penalised by getting nothing.

For examples of the back door bailouts, choose any of the following posts:

There is substantial evidence that the bailouts were not just via TARP and not just banks benefitted. There were numerous ways government hid bailouts and bank subsidies in order to present a favourable picture. The posts above identify some of this. Despite the propaganda machine’s attempts to label TARP a success, it was not.

5 Comments
  1. fresnodan says

    As cynical as I am, I have to say that line about “too bigger to fail” was pretty funny, but I fell out of my chair with cynical laughter when the little ?rabbit? ?bear? ?raccoons? ….. what are those things???
    said, “What did the Goldman Sachs buy?”
    “Nothing. Because when you own the US government you don’t need to buy a bank.”

    1. Edward Harrison says

      He does have a way with words. Sometimes you need a good laugh.

  2. fresno dan says

    As cynical as I am, I have to say that line about “too bigger to fail” was pretty funny, but I fell out of my chair with cynical laughter when the little ?rabbit? ?bear? ?raccoons? ….. what are those things???
    said, “What did the Goldman Sachs buy?”
    “Nothing. Because when you own the US government you don’t need to buy a bank.”

    1. Edward Harrison says

      He does have a way with words. Sometimes you need a good laugh.

  3. Stilesbc says

    Would be interesting to see what these little critters have to say about the suspension of m2m. I think that was the biggest bailout of them all.

    1. Edward Harrison says

      The m2m change was the critical one and the one which could be the undoing of this brief Nirvana. Unless house prices rise before the next downturn, we are going to see a lot of mortgage losses irrespective of the accounting.

  4. Stilesbc says

    Would be interesting to see what these little critters have to say about the suspension of m2m. I think that was the biggest bailout of them all.

    1. Edward Harrison says

      The m2m change was the critical one and the one which could be the undoing of this brief Nirvana. Unless house prices rise before the next downturn, we are going to see a lot of mortgage losses irrespective of the accounting.

  5. Tomcat818 says

    Hmmm… Do these bailouts correlate to the statistics on US wealth soaring between 2008-2011? I ask rhetorically. US millionaires grew by 33% (6.7-9.9 million) during this period with the average wealth in the neighborhood of 30 million. The US currently has 41% of the world’s millionaires within her borders this occurring while approximately the same number of the population (8-10 million) is just hoping to find employment. When you look at billionaires the numbers are just as shocking with the US having 403 and proportionally more than any other country by far. If this isn’t the most prolific oligarchy in the world I would be very surprised and it’s all been perpetuated by easy money policies like TARP.
    Yes, we all like a good laugh but I think anger is the more appropriate emotion in this situation. I think it’s high time the American majority moves beyond denial or disassociation and shows the appropriate emotional response to our government’s actions.
    https://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires

  6. Tomcat818 says

    Hmmm… Do these bailouts correlate to the statistics on US wealth soaring between 2008-2011? I ask rhetorically. US millionaires grew by 33% (6.7-9.9 million) during this period with the average wealth in the neighborhood of 30 million. The US currently has 41% of the world’s millionaires within her borders this occurring while approximately the same number of the population (8-10 million) is just hoping to find employment. When you look at billionaires the numbers are just as shocking with the US having 403 and proportionally more than any other country by far. If this isn’t the most prolific oligarchy in the world I would be very surprised and it’s all been perpetuated by easy money policies like TARP.
    Yes, we all like a good laugh but I think anger is the more appropriate emotion in this situation. I think it’s high time the American majority moves beyond denial or disassociation and shows the appropriate emotional response to our government’s actions.
    https://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires

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