The banking bailout last fall was designed to prevent another great depression. The idea of saving financial institutions, who through greed and right - wing deregulation of the banking industry brought the nation and the world to the verge of the greatest economic meltdown in history, was not a pleasant one for those of us who supported the bailout. Solving the Financial Crisis. A Modest Proposal September 23, 2008
Now we get word that As Big Banks Repay Bailout Money, U.S. Sees a Profit The New York Times reports:
Nearly a year after the federal rescue of the nation’s biggest banks, taxpayers have begun seeing profits from the hundreds of billions of dollars in aid that many critics thought might never be seen again.
That is not to say we are out of the woods:
But all the profits taxpayers have won could still be wiped out by two deeply troubled institutions. Both Citigroup and Bank of America are still holding mortgages and other loans that were once worth billions of dollars but whose revised values are uncertain. If they prove “toxic” because they cannot attract buyers, they could leave large holes in the banks’ balance sheets.
It was a difficult call. Let the banks go under and watch millions of innocent people financially destroyed, homes lost, businesses in ruin, bills piling up. Or bail out institutions run by the culprits, set rules that control their behavior and profitability, and reinstate reasonable regulations for the financial services industry that minimize the chance that this will never happen again.
The critics were loud and shrill, and downright nasty. They wanted failure. It may still come but for now credit goes to the Democrats, a few Republicans, and President-elect Obama dragging President Bush along for the ride who were willing to make tough decisions.
Remember the anti Pelosi hissy-fit?
Republicans Blaming Pelosi: They Sure Showed Her and Millions of Americans
Down in the twenty-fourth paragraph, long after the carnage and mayhem were reported came this:
Republicans blamed Pelosi's scathing speech near the close of the debate — which assailed Bush's economic policies and a "right-wing ideology of anything goes, no supervision, no discipline, no regulation" of financial markets — for the defeat. It was not much different from her usual tough words against the president and his party.