this post was submitted on 18 Dec 2023
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[–] toiletobserver@lemmy.world 80 points 10 months ago (8 children)

Just tell the banks and government to write it off, which can also be described as payback for bailing out banks in the past on more than one occasion and the beginning of free higher education. Then we can all high five for having done something nice for the country.

[–] BraveSirZaphod@kbin.social 12 points 10 months ago (7 children)

The government made a nominal profit on the bank bailout.

Early estimates for the bailout's risk cost were as much as $700 billion; however, TARP recovered $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit or an annualized rate of return of 0.6%, and perhaps a loss when adjusted for inflation.

https://en.m.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008

You can call it an inefficient use of money if you want to account for inflation, but all in all, preventing a complete collapse of the banking industry while not directly losing any money isn't the worst deal in the world, and certainly wasn't the runaway heist by the banks.

[–] kwking13@lemm.ee 21 points 10 months ago

Except they didn't fix the root of the problem, they just kicked the can down the road and made big banks even bigger. Some bigger than the Treasury itself. They set up a bigger ticking time bomb for someone else to worry about when they're gone.

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