Quote from olias:
Yeah, it was statements like 'change you can believe in' that turn my stomach. That's the kind of shit I associate with Clinton and why I have such little respect for him. Obviously 'change you can believe in' is the kind of shit a dude says to get elected.
Here is where you and I disagree. I tend to think the bailouts were a necessary evil. In a perfect world, nobody wants to see that shit. The fact that Obama supported the bailouts, indicates to me that he thought they were the right thing to do. I suppose you think we'd be better off without the US auto industry, eh? I suppose you think you know better what's good for the country than the President, Secretary of the Treasury, etc... Forgive me if I don't agree with you
Fine, bail them out and then regulate the living hell out of them, if you want a compromise. Break up the largest banks into smaller less risk concentrated entities. Return to Glass-Steagall. ALL of these were possible resolutions that could have been incorporated with a bailout package.
It's the "no strings attached" bailouts that have created a good part of the ire. Of course, I'm also well aware of that vocal faction that always mentions that the bank's repaid the loans, yada, yada. AFTER the mark to fantasy rules were implemented and, obviously all of the mortgage market shenanigans continued unabated (as we've seen surface in recent months). I won't even mention speculation about the cozy relationship between the NY Fed and the Primary Dealers, it's just not worth the hassle of debating that.
But I do ask you one major question. In all seriousness, no partisan shit implied, how do you reconcile the value of bailouts if it removes the free market principles of supply and demand? For instance, since the student loan market hit the skids in 2008, the government has become the lender of last resort, with no obvious lending standards to abide by when issuing billions in loans (don't have the exact numbers). In turn, tuition prices far outpace inflation (at least stated inflation) and students go into enormous debt for that piece of paper. Without generous loan availability, with less students able to secure the loans, what do you think would happen to tuition prices?
Yesterday it was the auto industry, tomorrow it's the states. We know there will be bailouts for years to come. If they are going to continue down this road, then the LEAST they could do is play hardball like a Christie in New Jersey. The private taxpayer should never be secured as a means to fund a favored segment of the populations entitlement costs.