They claim the problem is “Too Big To Fail,” but it’s not. What happened is that Obama & Bush reinterpreted “Too Big To Fail” in the most billionaire friendly, pro corporatist manner possible.
The old timers around here can tell you about Bank of New England. It fell victim to the first earth-shattering banking crisis created by all the “Deregulation” that conservatives rammed through under Ronald Reagan…
Anyhow, Bank of New England was “Too Big To Fail,” so that meant the government kept it open, shoveling tens of billions of tax payer dollars into the company, underwriting more than $1 trillion in loans?
Of course not.
"Too Big To Fail" never meant that you kept a bad institution going, it meant that the government covered everything — even the deposits above & beyond the FDIC insurance limits.
Bank of New England was closed. The government paid off it’s losses and then turned around and sold off it’s assets. The bank was shut down.
This is NOT what the Obama/Bush administration did. They decided to reinterpret “Too Big To Fail,” to REDEFINE. Under Obama — JUST LIKE BUSH — “Too Big To Fail” meant that a bad company would be kept in business, and the same management which lost all that money would be handed a blank check, a virtually unlimited supply of more money to lose. And it worked.
They all lost more money.
Bank of America, Citigroup, AIG… they all failed, they all got heaps of “Bailout” money and they all lost it… requiring the government to pile on more & more cash which it never had in the first place.
Can you say “Budget Deficits”?
Seriously, folks, Obama screwed this nation, and he screwed it bad. He has honestly been a really terrible President.