Occupy: The bailouts prove Wall Street bribed our government.
Mike: Wall Street received TARP loans and have paid them back.Occupy: So who was bailed out?
Mike: Hundreds of small banks in every congressional district.Occupy: Small banks own the government?
Mike: In a way. Small banks give political contributions to congressmen. And, hundreds of small bank failures would point blame at government's disastrous housing policies.Occupy: Occupy Main Street!
Mike: Not quite. Try "Occupy Government".
Wall Street Was Not Bailed Out
11/26/11 - Power Line by John Hinderaker
[edited] In what sense were “Wall Street banks” bailed out? They weren’t in fact “given” any of our money. Most of the largest banks (which were perfectly healthy) were forced to take TARP loans so that there would be no stigma attached to the few large unhealthy banks, and the many unhealthy small community and regional banks which were saved by those loans.Almost all large “Wall Street banks” have repaid their TARP loans with interest and in short order. Three-quarters of TARP went to hundreds of small regional banks, notoriously unstable, particularly from commercial real estate lending. It is exactly those small banks who who remain “bailed out”, who lent recklessly to the real estate developers who built the bubble housing.
Taxpayers will end up paying for the government policies which directed money into housing and to automobile worker's unions. Wall Street made 3% commissions. The rest of the bailouts have gone to Main Street, the 99%.
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