From Ritholtz:
I enjoy helping people out, especially those who need it.
But, to bail out the very same bankers why prevented me from buying a reasonably priced home for the past 5 years after they hundreds of billions in salaries, bonuses, and perks? Yeah, I have a problem with that.
I’m sick and tired of seeing my tax dollars going to save businesses that don’t deserve saving.
Great graphic. This displays one big part of why I am so negative.
The other parts: Foreign Debt, The bond market Ponzi Scheme, The run away printing press (hyperinflation coming soon), GM Nationalization, Cap & Trade, the Health Care “reform” (yes our health care is too expensive, but the new plan will make things worse), AND, Goldman Sachs Cronyism.
This is the short list
As P.J. O’Rourke said, “If you thing health care is expensive now, just wait until it’s free”
I find it funny how many of these same banks who had no probelm lending during the boom now have no probelm getting money from the goverment! They are getting all this money and yet are not using it to lend which is not helping out the market. Unless they start to lend things are going to stay the same for some time…
The govt obviously thought they could not reinstate our economy without removing several trillion dollars in debt from the largest banks in the country. This was the KEY in creating the mirage that we’re now witnessing. We have simply kicked the can right on down the road, in order to try to defer our real problem … TOO MUCH DEBT. The funny part is, I knew this was ultimately going to happen (most of us paying attention also knew), but what I didn’t expect was the blatant disregard to free market economics.
I fully expect a larger economic calamity in the future (possible near future). I expect the next hammering of our economy to come from different places than the banks and insolvent borrowers. The next step down will likely start in the bond market as Asian countries (savers) stop doing business with the undisciplined western world (spenders).
This massive Ponzi scheme has a day of reckoning coming.
I like how everyone, the govt. included, claims that their bailouts, cars for clunkers, etc. are working. Really? Our country is way further in debt than when he took office. Our budget is 3 times in the red than it was with bush via the Obama spending spree.
Cash for clunkers was so successful, they should have a cash for plasma screen campaign, how ’bout cash for hot-tubs?
And to boot, they are not ruling out tax increases for the middle class, and have yet to address the coming (and present) inflation issues, yet they acknowledge they do exist.
Recession over!
I fully appreciate the very real costs of the various bailouts (not to mention their very uneven distribution among industries and population segments), but this chart seems dishonest to me. The $8 trillion ‘cost’ of the bailouts (correct me if I’m wrong) is the total GROSS amount committed by various Fed and US Treasury programs to all sorts of ends, including TARP, fiscal stimulus, diverse special lending ‘facilities’, etc. But it is wildly unlikely that the NET cost of all of these bailout efforts will be anything like $ 8tn.
Many banks, as widely reported, have already paid back their billions in TARP bailout funds, with interest and bought back the associated warrants, for example. On these, the Treasury has made a profit, so the NET cost of those ~$100bn or so is less than $0.
By your calculations, a bank that issued a $500,000 mortgage to a good lender who paid it back in full with interest would have “lost” $500,000!