Tuesday, April 12, 2011

Don't Get Mad

Remember when we bailed out the banks to the tune of hundreds of billions of dollars? Well don't get mad, but the bail out records have been released and it's even worse than we thought.

Not only was the Fed handing out money to banks who didn't deserve it, but it even handed hundreds of millions to individual people who didn't need it. They didn't need it because they were *wait for it* already super wealthy.

...with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment.

If you have connections, the government will give you free money. We need to do something about that.

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