(But don’t worry, Cyprus was an exceptional case.)
The article goes on to say that the bailout of Fannie Mae and Freddie Mac was good because it helped buoy the housing markets. It does say that the bailouts were not free of cost however because of the moral hazard the US government has enabled.
One more dose of David Stockman today. Suddenly Fox Business News wakes up (after reading the former OMB chief’s new book) to discover that we’ve been completely jacked by the big banks.
You the tax payer, you do not matter.
The mega-banks are “mega” because the government helped make them that way. Instead of letting the big banks fail in 2008, Hank Paulson swept in and backstopped them, bailed them out, even though the market was trying to correct for years of stupidity both from Wall Street and Washington. The universe wanted to break up the cartel, but the government would not let it.
Looks like the “Pay Czar” is being a little loose with the purse strings. The bailouts were so long ago. How can we expect these executives to get by on less than a million dollars a year?
The Wall Street Journal got this right in an editorial today:
Ron Paul is no fan of Mitt Romney to be sure, but he makes a good point about the way the vote went on Tuesday.
In the attached article John Tamny at Forbes.com explains that there was no need for the bank bailouts.