Another ‘big lie” – bank bailout

It’s Hinderaker on the occupiers and their complaints about Wall Street and the bailout of big banks:

“For years, my friends in the banking industry told me that the federal government was forcing them to make bad loans. Mortgages were not the only such bad loans, but while they were the largest, they were also the least problematic from the banks’ standpoint, since the taxpayers, through Fannie Mae and Freddy Mac, stood ready to buy them and assume the risk. The financial collapse of 2008 and the recession that followed were caused primarily by liberal policies enforced by the federal government that went back to the Carter administration.”

“”In what sense were banks “bailed out”? They weren’t “given” anything. Large banks were forced to take liquidity loans by the lender of last resort to prevent a bank run while the equity holders got mercilessly hammered in the market. Most “bankers” had huge amounts of their bonuses and net worth in options or in equity in the bank, respectively, which also became nearly worthless. Hundreds of thousands of “bankers” lost their jobs and will never work in finance again, most likely. This is a “bailout”?””

“”The bank liquidity programs were nothing like the bailout of GM or Chrysler, which were actually given money directly and indirectly, through special tax legislation creating a loophole worth about $45 billion in foregone taxes, most of which will never be recovered. And it was done in an irregular.””

“Of course, if the Democrats want to base their 2016 campaign on anti-bank populism, they will have to deal with the fact that the financial industry contributed more money to Barack Obama’s campaigns than any industry has contributed to any candidate in the nation’s history. Why might that be? The Democratic Party is, and has been for a long time, the party of Wall Street. The congruence between the Obama administration’s policies and Goldman Sachs’s interests is almost perfect.”

It’s where the money is and that means it is a rich target for political hacks who haven’t considered the morality of their ideology. The lack of intellectual integrity is a necessity in order to maintain the pretense, to believe the lie. That never turns out well.

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