Why Did We Have To Bailout The U.S. Financial System?

  1. PhoenixV profile image75
    PhoenixVposted 5 years ago

    Why Did We Have To Bailout The U.S. Financial System?

    Why did we have the Emergency Economic Stabilization Act of 2008 to bailout banks?

  2. Jeromeo profile image61
    Jeromeoposted 5 years ago

    The Banks created monopoly money out of mortgage futures, mortgage futures that were based on bad credit.  American Hedge Fund Brokers and other Wall Street types, knew the financial instruments they were bundling and selling were worthless, but they pushed them as if they were.

    When the speculators drove gas prices through the roof forcing many already, just hanging on home buyers, to miss mortgage payments; the whole house of cards came down. It was discovered that most of these mortgage were based on bad credit risks.

    Many of the institutions that were seriously hurt by the economic collapse were foreign corporations and  foreign governments, like Greece.

    By contributing to the, international bailout fund, America is covering Wall Street's debt and the reckless and in some cases, down right illegal actions, of the players on Wall Street.