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| Source:The Real News- the U.S. Department of Justice. |
"Arthur MacEwan: Opposing bail out of bankers and fighting for Universal Health Plan challenges corporate power."
From The Real News
The problems with TARP of 2008 (or the Temporary Asset Relief Program) is that we borrowed about 800B$ to pay for it, to go on top of a 400B$ Federal budget deficit and a 10T$ Federal debt and we bailed out failing banks we essentially bailed them out for their bad behavior. While the victims of their bad behavior the people who did business with their banks, remained victimized. And three years later they are still struggling from the banks bad behavior.
The problems with TARP of 2008 (or the Temporary Asset Relief Program) is that we borrowed about 800B$ to pay for it, to go on top of a 400B$ Federal budget deficit and a 10T$ Federal debt and we bailed out failing banks we essentially bailed them out for their bad behavior. While the victims of their bad behavior the people who did business with their banks, remained victimized. And three years later they are still struggling from the banks bad behavior.
We bailed out banks that were "too big to fail" first of all we allowed them as a country to become "too big to fail" in the first place. And then we bailed them out for their bad behavior, which is a double-edge sward for the country. We suffered for our government's bad behavior of letting banks become "too big to fail" in the first place. And then we suffered from these banks and their bad behavior.
What we should've done instead is force these banks that are "too big to fail" breakup as a result of becoming too big, as a condition of getting their bailout money, as well as forcing these banks to come up with new management, as another condition of receiving TARP, as well as forcing them to buy Bankruptcy Insurance. So they would never need to be bailed out again at all, because they would have their insurance that they could go to when they are failing.
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