Forum Post: The Bank Bailouts have cost us $3.5 trillion, increasing $1 trillion every year
Posted 13 years ago on Oct. 21, 2011, 11:38 a.m. EST by precipice
(220)
This content is user submitted and not an official statement
The chart (attached) compares the trendline of US debt before and after the the Lehman bailout and the rescue of everyone else by the US Fed. When the effects of the bailout are extrapolated, every year the US will incur well over $1.2 trillion each and every year as a result of bailing out the banks. That is the true cost to Americans.
Folks, this is a CLASSIC example of how little OWS'ers know about what has happened in the past, what is happening in the present, and what is likely to happen in the future. The Govt did NOT bailout Lehman. We let them collapse. The financial markets went into free fall as a result and the Govt decided that it couldnt risk letting other major institutions go under like Lehman did. Folks, before making "DEMANDS" for this and that - Please try to get a clue about the very basics of the world you are living in. This poster clearly does not.
What is immediately obvious is that US debt is currently $3.5 trillion higher than where it would be had America's banks not received a rescue. Unfortunately, the Second Great Financial Crisis, that of bailing out insolvent sovereigns, is currently and process. And when all is said and done, the global cost in terms of new "trendline" debt will be many more trillions in incremental debt every year.
The bailout monies were repaid. The increase in debt is due to the new healthcare law and then stimulus monies, that have not worked. Oh and the war in Afganistan.