Mural by Elihu Vedder; 1896
And, Bailout Wednesday is read “Quantitative Easing II,” also known as printing money.
Basically the FED creates money out of nothing and then buys assets from institutions. Some, if not most, of these purchases may consist of distressed assets (market value is meaningfully below book value). Taxpayers are awfully generous to enable banks and other financial institutions to indirectly dump their bad assets on them.
To wit, taxpayers are so generous they even elect their representatives and politicians who are backed by financial institutions and other lobbyists. Fortunately, there are unlimited campaign contributions to help determine the best politicians money can buy (see link below):
Who Owns Congress? A Campaign Cash Seating Chart
Nevertheless, in developed nations, there is a saying that a people deserves its politicians; or, the politicians are a reflection of their people.
Basically the FED creates money out of nothing and then buys assets from institutions. Some, if not most, of these purchases may consist of distressed assets (market value is meaningfully below book value). Taxpayers are awfully generous to enable banks and other financial institutions to indirectly dump their bad assets on them.
To wit, taxpayers are so generous they even elect their representatives and politicians who are backed by financial institutions and other lobbyists. Fortunately, there are unlimited campaign contributions to help determine the best politicians money can buy (see link below):
Who Owns Congress? A Campaign Cash Seating Chart
Nevertheless, in developed nations, there is a saying that a people deserves its politicians; or, the politicians are a reflection of their people.
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