Re:Federal Reserve secretly bailed out large companies, incl...
by joe_the_user on Monday December 13, 2010 @06:17PM
(#2002351)
I disagree. Giving credit is as much a bailout as giving cash.
What Bernanke and company did was breath enough life into the previous bubble to allow it to limp into survival.
The survival of the bubble is huge tax on any ongoing economic activity - essentially it's the same policy that lead to Japan's Lost Decade and indeed has lead to an economy that will be more or less permanently indebted to Wall Street.
I would admit that the bail-out was an inevitable result of the previous ten-twenty years of building too-big-to fail enterprises on who's survival the whole of Wall Street Finance was (correctly-so-far) bet. These bets were naturally helped by the large investment houses having interchangeable personel with the policy makers.
What Bernanke and company did was breath enough life into the previous bubble to allow it to limp into survival.
The survival of the bubble is huge tax on any ongoing economic activity - essentially it's the same policy that lead to Japan's Lost Decade and indeed has lead to an economy that will be more or less permanently indebted to Wall Street.
I would admit that the bail-out was an inevitable result of the previous ten-twenty years of building too-big-to fail enterprises on who's survival the whole of Wall Street Finance was (correctly-so-far) bet. These bets were naturally helped by the large investment houses having interchangeable personel with the policy makers.