> The problem is that the government rescued the banks with public bailouts, at a time when a true capitalist system would have put them out of business.
Umm, the bank bailouts aren't the big problem. They turned a profit, and since the subprime crisis was mostly due to govt action....
The big problem is the other bailouts and subsidies. They're never going to pay off.
That article doesn't argue that bank bailouts were the big problem. It argues that bank influence, specifically Goldman Sachs, is the big problem. There is a difference.
As I wrote, the bank bailouts weren't a huge money-suck and the subprime crisis wouldn't have happened without govt intervention. (We can argue about why govt intervened, but that doesn't change the fact that it did.)
You can't say either about the other govt bailouts.
Note, I'm excluding the GSE's (like Fannie Mae) bailout from "made money" - that is still losing money.
Umm, the bank bailouts aren't the big problem. They turned a profit, and since the subprime crisis was mostly due to govt action....
The big problem is the other bailouts and subsidies. They're never going to pay off.