Posted on March 24, 2012 by WashingtonsBlog
Open-Ended Bailouts Are Continuing
We’ve previously documented the fact that bailouts of the big banks are continued in stealth mode up to the present day.
True, the banks claim they’ve repaid the Tarp bailout funds … but nearly half of the banks “repaid” such bailout funds by borrowing from other government bailout funds (and the rest could only repay money by fudging their accounting and using stealth bailouts which are are a little harder to detect).
Indeed, the government has decided on perpetual bailouts for the too big to fail banks.
Some of the ongoing stealth bailouts include:
Obama’s erroneously-labelled “jobs” act (and see this, this and this)
The mortgage settlement (and see this and this; indeed, settling prosecutions for pennies on the dollar is always a backdoor bailout)
Interest rate swaps
The Transaction Account Guarantee program, an extension of FDIC insurance coverage to all transaction balances
And the fed is going easy on the big banks in many other ways as wells
But the biggest ongoing bailouts include interest rate spreads, interest on excess reserves and other constant streams of bailout revenue:
There are so many rivers and streams of bailout money going to the big banks, I will start with the specifics and end with broader monetary policies.
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The TARP bailout is peanuts compared to the numerous other bailouts the government has given to the giant banks [and even the numerous rounds of quantitative easing are a drop in the bucket compared to stealth bailout
http://www.washingtonsblog.com/2012/03/big-banks-continue-to-suck-at-the-government-teat-with-never-ending-stealth-bailouts.html
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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