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Mike Russo says
I don't agree with all of your comments. But I must point out that if everyone was simply given 100k. 100k wouldn't be worth anything anymore due to inflation. If we gave everyone a million dollars, it wouldn't be enough to buy a small home.
I don't expect 2 many will agree with me in today's world of the exaltation of greed above all else. The 100k amt was metaphorical but even 1mil would have been cheaper than what was done.
I meant the impact of monetary velocity in giving away money. Greed was not the cause of the financial crisis as much as social engineering of the MBS market by the GSE's. I guess you could call that greed in the sense of pursuit of political power.
either way the result was the same: the rich got richer and the poor got poorer.
Not Really, Money placed on a bank balance sheet doesn't have the same effect on inflation. I didn't personally agree with TARP. But the tax payers made out quite well on it anyway. The return was several hundred billion to the treasury.
how did the taxpayer make out on the bail out? Is there something i missed?
The Treasury was paid back in many cases in common stock of the banks which had appreciated signifigantly and was sold for a profit. The banks were profitable, unfortunately we lost money on the auto bailout.
OK i get it now. corporations are the same as people, so they are the tax payers who made out, not the individual citizens.
No the US Treasury dept. The same people that gave them money (US Treasury) got it back and then some. Technically all the stock is yet to be sold. The Treasury just recently sold some GM stock two weeks ago.
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