Bank Bailouts Explained...

[golfguru]

http://www.youtube.com/watch?v=yipV_pK6HXw&feature=player_embedded

[golfguru]

1. An easy to understand explanation of Bank Bailouts

Sad but true.

[golfguru]

2. Comments welcome.

If you disagree with anything the bears are saying, a link
would be appreciated.

[doc03]

3. The part I would like explained is we have been told

the most of the bailout money has been paid back. If we were paid back why didn't the deficit drop?

[Dokkie]

4. we have been paid back alright

with toxic assets exchanged for real cash from the FED. But thats not the most infuriating part about the whole deal.
1st we lent these financial institutions almost $800b @ 0% interest rate(lets ignore the FED bailout) from money we borrowed from outside creditors @ 3% + interest rates.
These financial institution then bought treasury bond, other banks, lent it to the American people through loans, credit card etc at 10-20 + times what the country charged them.
Then after 2 yrs, they as a whole have only paid back 650b of the almost $800b we lent them.
And somehow people go around claiming that we are going to make money from the loan

[Dokkie]

5. plus

we gave them massive tax break so as to be able to pay back the loans

[doc03]

6. What I don't understand if they paid us back $650 billion

shouldn't this years deficit be $850 billion instead of $1.5 trillion? Where the hell did the TARP money go that was paid back. What about the money GM paid back? Where is it?

[golfguru]

7. Very good question!

May be there is a black hole under Bernanke & Geithner's offices.

Seriously, though, that money probably went to bail out other big banks
"too big to fail".

[Enthusiast]

8. Best video ever!

I would like to sit the Geithner down and make him watch it.

[ThomCat]

9. Well Done.

:applause:

[Safetykitten]

10. People! The current belief system demands that we the taxpayers made out like bandits.

So don't salmon the narrative.

[neverforget]

11. These are awesome! Whoever malekanoms is is brilliant!

Well done!