>>5
>The banks over-borrowed from each other and funded too many financially unviable projects with this credit. Now some of them will pay the ultimate price
Unfortunately, it is WE (the taxpayers) who are paying the ultimate price. Regarding the bailout:
It is not just $700bn. That is a cap. They can have no more than that in hand at one time. Here is the scheme: Bring in a security worth $1000 that you paid to a bank. This gives the bank 100% of what they paid for it. Sell the security back to the same or a different bank for $800. Taxpayers eat the $200 difference, first bank is made whole on their investment, the next bank gets a great deal on the output of this money laundering scheme. Banks make profit galore, taxpayer gets hosed. They can keep crap coming in and going out for a long time without reaching the cap. It was initially thought the fund would take in that security already discounted to $800, but Paulson managed to get that section removed.
LOL, Money Masters.
Oh, and I only withdrew 2K, leaving a five-figure sum in my account. The real problem here was, is and always will be the fucking Federal Reserve and fractional-reserve banking.
There are only about 150 billion dollars in circulation on an estimated 6 trillion in deposits. Is it any coincidence that the Fed stopped publishing M3 data? Disgusting.