LegendKiller
Lifer
- Mar 5, 2001
- 18,256
- 68
- 86
What should have been done was due diligence. That a mortgage crisis was inevitable based on how business was done and the painfully obvious fact that the taxpayer was ultimately the one to get screwed does not in any way mitigate subsequent actions. The ripple effects may be less but we're on the hook and the only ones who get a pass are the financial institutions and their lapdog politicians on both sides. I find I must accept the unacceptable, and that does not sit well.
This election cycle we're going to put right back into power those who failed their duty regardless who wins. That sucks.
Most of the liquidity provided, such as CPFF, were short term loans. The Fed didn't invest equity, just loans. Those loans rolled time and again which results in the large numbers discussed. If you lent somebody $30bn overnight and then did that for a month the number becomes large but ultimately the number at any given time isn't.
As far as "taking over" foreign banks, that's a joke. These banks weren't just there buying securities, they also lent to small businesses and large businesses in the US.
The world is interconnected now.