hellofromwarsaw
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- #21
TYVM- Pubtrolls!! Banana Republicans!! Brainwashed! Haters!
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What the fuck happened to paragraphs?
Plus, Dems under Clinton had the chance to regulate toxic derivatives, but what did they do? They chased Brooksley Borne out of Washington. Then Obama hired old Clintonites such as Summers, Geithner, and Gensler. Now Gensler is heading the CTFC.
Plus, both parties are responsible. However, Dems played their role.
Read the GD OP, dupe...Over 80% of the problem was private morgagers duh....
Guess you never heard of bailouts. Sorely misled.
The banks repaid their loans. The Treasury made a profit. Sorry if that ruins your rant.NOT!
While its maybe more true than it was maybe a year ago, the notion that the bailouts were repaid is still one of the great myths of the crisis era.
The Treasury will probably break even on AIG. So what about Goldman?Most of the time, when people talk about the bailouts being paid back, what theyre referring to is the TARP or Troubled Asset Relief Program, which among other things involved direct cash injections into companies like Goldman Sachs. It is true that most of the money lent out via TARP has been paid back, with interest. Goldman, for instance, paid back its entire $10 billion loan.
But the bailouts reached far beyond cash loans, and that money is mostly never coming back. Take the case of Goldman. Goldman got $10 billion via TARP, but it also got $12.9 billion through the bailout of AIG, money that it would have lost otherwise; that money is never going to be paid back.
That's awful! The bank guarantees made the Treasury money. Also, the banks pay taxes on their profits.Another typical method of bailing out companies without direct cash injections was to allow firms to borrow money against a state guarantee. What programs like the TLGP (Temporary Liquidity Guarantee Program) allowed the banks to do was borrow against the governments charge card instead of against their own more risky profiles. That way, the banks were able to spend billions less in finance costs on the money they borrowed. Goldman, for instance, borrowed at least $19 billion against the TLGP. How much more would they have had to pay to borrow $19 billion on the open market, without the government guarantee? Hard to say, but the figure is surely in the hundreds of millions.
Short term loans already repaid at a profit to the Fed.The biggest bailout mechanism was the banks ability to go to the Fed and borrow hundreds of billions in emergency loans at rock-bottom interest rates, or sometimes at zero. Goldman, for instance, borrowed $600 billion in emergency loans during the crisis period, which makes the $10 billion TARP payment look meager.
The current Discount Rate is 0.75%. It's such a good deal that banks are currently borrowing $20 million at the Discount window. LOL!Your friend would say that the banks ultimately paid those loans back, which is true, but put it this way: If a bank can go to the Fed, borrow $100 billion at 0% interest, lend it out on the market to all of us suckers as 4% mortgages and 11% credit cards and so on, what does it mean when it returns that money to the Fed later on? Are the profits they make in the meantime earned money, or is that subsidy? You and I dont have the ability to borrow at 0%, but Goldman and JP Morgan Chase do.
But enough about Fannie and Freddie.Sure. I'll go with facts about the costs, and the guilty.
Levin-Coburn Report On the Financial Crisis
WASHINGTON Concluding a two-year bipartisan investigation, Senator Carl Levin, D-Mich., and Senator Tom Coburn M.D., R-Okla., Chairman and Ranking Republican on the Senate Permanent Subcommittee on Investigations, today released a 635-page final report on their inquiry into key causes of the financial crisis. The report catalogs conflicts of interest, heedless risk-taking and failures of federal oversight that helped push the country into the deepest recession since the Great Depression.
Bush shouldn't have pushed for more home ownership for the poor, but CRA and Fannie and Freddie was all Dems.Pubs caused the bubble, the bust and the 2nd Pub Great Depression, and are now screwing up the recovery, all for political gain, all to get power back and screw the non rich AGAIN. When will their fools ever learn.