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View Diary: What does a multi-trillion dollar bailout get you? (24 comments)

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  •  Another point about the bank bailouts... (2+ / 0-)
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    WheninRome, nchristine

    The bailout wasn't just supposed to re-capitalize the TBTFs.

    The bailout  was supposed  to be on condition the banks would start lending to the real economy again, investing in productive uses/enterprises. That would increase jobs and grow the economy, increasing real returns to banks and businesses.  There wasn't, however, any legal requirement for that to happen.  And it hasn't happened.  

    Banks use/d the money to buy other banks, pay their management huge bonuses, and park money at interest.
    TBTF banks are making no effort to allocate capital to productive uses in the wider economy.

    Sound small and medium sized businesses are being ignored by TBTF banks.  Even the banks' own long time profitable customers are being denied simple roll-over and capital improvement loans.  The TARP money that was supposed to find it's way into the real economy is being hoarded by the TBTFs.  This is a bigger story and bigger failure of the bailout re: the real economy than is generally reported.

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