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"None of us knows yet if there'll be any cost to the taxpayer at all."
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This statement is complete nonsense. When you use 'BAD DEBT' as an 'asset' you are getting NOTHING in return. I worked BAD DEBT for many years. If you can recover 10% you were considered a king.
Giving loans to those who have already proven incapable of handling their finances IS NOT GOOD BUSINESS.
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Some assume "taxpayer risk" means if the government puts up cash, the taxpayer has to pony up more in taxes if the government loses money on the deal. That's not impossible, but usually it's not that direct.
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Yes it is that direct. WE THE TAXPAYERS fund the government.
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When the Fed steps in to help with cash infusions, it usually produces the money by redeeming the Treasurys in its portfolio.
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You guys better learn how the fed operates. What do you think 'the Treasurys' are? The fed cashes them in meaning THE TREASURY issues currancy. This guy is an idiot.
I read the rest of the piece. It is pure sophistry and propaganda that to someone who knows nothing about the fed, economics or politcs (which is the vast majority of americans) sounds feasible. However, the reality is nowhere near as pretty.