Friday, April 11, 2014

TARP

I just finished watching "Too Big to Fail" the 2011 TV Docudrama. The following is a quote from the very end of "Too Big to Fail"
begin quote:
Following the passage of TARP banks made fewer loans and markets continued to tumble. Unemployment rose to over 10 percent and millions of families lost their homes to foreclosure.

In 2009 panicked markets stabilized and the slide into global depression was averted. The biggest Banks repaid their TARP money.


In 2010 compensation on Wall Street rose to a record $135billion.

Ten banks now hold 77 percent of all U.S. Bank Assets.

end quote from docudrama "Too Big to Fail"

And obviously those ten banks are even more "Too Big to Fail" than before the 2008 crisis and Great Recession.

Timothy Geitner who actually thought of this fix (that actually has worked to prevent another great depression worldwide so far) realized that this was going to be a tradeoff. It would make the biggest and strongest banks even bigger and stronger BUT it would save the economy of the U.S. and world from completely collapsing worse than the Great Depression.

However, like he said it was a tradeoff because the biggest and strongest banks would only get bigger and stronger through this move and even more "Too Big to Fail".

If any one of these banks failed now it would bring the whole global economy to a crashing halt. And there are several foreign banks around the world that if they failed would bring the entire world economy to a halt too many many times worse than the Great Depression and what came after.

This is something that the whole world needs to think about long and hard because each one of these banks is a potential bomb that could go off at any time destroying the economies of literally all nations in all the direct and indirect repercussions that would naturally ensue and reverberate worldwide during the next year or years after this first happened.

Troubled Asset Relief Program - Wikipedia, the free ...

en.wikipedia.org/wiki/Troubled_Asset_Relief_Program
Wikipedia
The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase assets and equity from financial institutions to strengthen ...

Tarp - Wikipedia, the free encyclopedia

en.wikipedia.org/wiki/Tarp
Wikipedia
From Wikipedia, the free encyclopedia. Jump to: navigation, search. Tarp may refer to: Tarpaulin, a large sheet of strong, flexible, water resistant or waterproof ...

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