And the government didn't bail out the S&L's. We covered that yesterday. The government was the insurer of S&L deposits. The government had to provide money to its insurance corporation.
You still don't get it, do you? First, Congress had to appropriate over $30 billion to bail out the S&L's. This was because the insurance premiums paid by the S&L's to insure the deposits was inadequate to cover the losses. This means they used MY money to pay off bad loans made by the S&L's. That's a bailout. Second, I'm not sure I even agree with the gov't being in the insurance business. Why am I paying Nagin to rebuild New Orleans? I don't see them coming to Indiana to rebuild here after a tornado. To me, that's a bailout for NO. You can call the payments to the S&L's whatever you want, but when they come into my pocket to seek federal tax money to pay to private companies, that's a bailout.
I agree with “econjack.”
It was a BAIL OUT!!!