BAILOUTS are not HANDOUTS

[denem]

For the most part BAILOUTS are loans,
government loans
loans that private capital markets do not like
and seek to undermine.

A loan, whether it's 'foreign aid' or a 'bailout' is STILL selling debt.
BUT it does cut out for profit commercial lenders.
The capital markets carnivores do get some treasuries to chomp on,
but it's relatively slim pickings.

But consider this - if private banks loan - sells debt
to a cash strapped business, they create credit, or
print money if you like The business gets $xxx
and the bank has sold $xxx debt which is now on it's books.

BUT One Bank "MUST NOT" do this
THE FED - why THAT would put everything at risk!

Did you every wonder why the TARP funds
had to come from the taxpayer?
The Fed after all has created credit/printed money
of $2.3 trillion to compensate for a similar
contraction of private credit / money.

$2.3 Trillion of 'Quantitative Easing' versus
$750 Billion of TARP that landed in the taxpayers laps?

Well here's my 2c.
A Fed loan cuts private finance profit to zero
on that transaction.
All they are left with is derivate speculation
perhaps.

Next time your hear 'Bailout'
think of a loan
a loan that fails to deliver
the blood capital market vampires
insist is theirs alone.

[Demeter]

1. Loans that are NEVER Repaid, I Might Add

while the capitalists who profit from them are never taxed, either.

[denem]

2. Which bailouts are never repaid? GM?

The big banks?

Fact free statements are just that.

Why have a Reserve bank in the first place?

[Shagbark Hickory]

3. When are the American people gonna get a bailout?

[denem]

4. $2.3 Trillion quantitate easing.

Ordo you mean more tax cuts?