Quote:
Originally Posted by 911teo
It would have costed the "taxpayers" much more than $138bn if the system collapsed.
I really don't understand all these people that cry foul without really knowing what is going on.
The CDS (Credit Default Swap) market is a $62 trillion ($62,000 billion or $62 million millions) mkt. Letting Bear, Freddie and Fannie, Lehman, AIG or any other big institution fail big time will likely unravel the whole system.
You [can't] let this happen. Period.
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Are you making some sort of "reverse-supply-side economics" argument here?
Are you telling us that the government cannot allow private business to fail if their failure will trigger losses that will reduce the tax revenue streams?
Those who are making your arguments are either the ones who really don't understand "what is going on" or are somehow benefiting from the bailouts.
The simple fact of the matter is that too many people, for decades, have been handing their money to investment companies with the thought that they could make money by "investing" without putting in any effort.
In some cases, when the investment companies are run by honest people, it is true that one can "delegate" the research required to make money investing to others for a percentage of the returns.
But now, large numbers of the investment companies have been
mis-managing their clients money. They have effectively
lost their customers' money -- or lost large portions of it.
Rather than allowing the losses to become apparent, by allowing these firms to fail, these investment companies have run to the Fed and Treasury for a handout.
Everyone in the country -- whether one had put money at risk or not -- is now paying (through taxes and inflation) for the losses that should be suffered by those who made the failed investments the government has taken onto its books.
These bailouts are nothing more than the transfer of wealth away from "Main Street" to those on "Wall Street."
What we are seeing is a form of
socialism for the "rich." (The "rich" in this case are those with money invested in certain markets.)