I understand that but their contracts were not with the US government. The US government doesn’t need to be on the hook for other parties contracts unless we, the US, represented that we would guarantee those financial instruments.
Well, DB, you’re just plain wrong. The U.S. is a free-market, capitalist paradise. The vey paragon of how economies should be run. Until the sh*t hits the fan and the Big Boy are about to take it in the shorts. Then it’s up to the Government and the taxpayers to fix their mistakes. Until they start turning a profit again, then its back to the free-market, capitalist paradise.
“The US government doesn’t need to be on the hook for other parties contracts unless we, the US, represented that we would guarantee those financial instruments.”
Quite so. However, the US government now HAS represented that they are guaranteeing financial investments. If they are doing that, then they must be doing it for everyone who has a hand in a particular series of investments.
This is the thing with bailouts. They solve a problem true, but at the expense of creating others