Bank bailouts Archives

Losing While Winning

By Econ70 | 09/13/2011

After spending so much to save the banks from collapse the government is now suing them for roughly $30 billion! That’s the amount lost by Fannie and Freddie and attributable to the big banks. Even if these suits have merit, this drama has no winners. If the gov’t wins it still loses as banks will…

Countercyclical Measures

By Econ70 | 04/25/2011

Including the stimulus, tax cuts, bailouts, home and car subsidies and automatic stabilizers (i.e. unemployment insurance and food stamps) the Great Recession will add about $4.2 trillion to the federal debt by the time it ends. The largest contributor; automatic stabilizers. They kick in when the economy slows. These stabilizers will add about $1.9 trillion…