Bailouts : American government subsidy of the Private Enterprises

The Federal Reserve (the Fed) has a history of intervening in financial crises through bailouts, primarily to maintain financial stability and prevent economic collapse. These interventions, while often controversial, have been a key part of the Fed's role as lender of last resort. Notable examples include the 1907 Panic, the Great Depression, the Savings and Loan crisis, and the 2008 financial crisis. Early Examples:<

1792 Panic: The first instance of a government bailout in the US involved Treasury Secretary Alexander Hamilton, who in 1792, used government funds to purchase failing bonds and stabilize the market. <






https://www.google.com/search?q=history+of+bailouts+by+fed&client=safari&sca_esv=6e2599d90674ab21&hl=en-us&sxsrf=AE3TifOo8akQJ-Emw_rglydfo-ExcKEjCw%3A1752032875894&ei=a-ZtaO-mNryliLMPj47uyQc&oq=history+of+bailouts%C2%A0&gs_lp=EhNtb2JpbGUtZ3dzLXdpei1zZXJwIhVoaXN0b3J5IG9mIGJhaWxvdXRzwqAqAggAMgQQIxgnMgUQIRigATIFECEYoAEyBRAhGKABMgUQIRigATIGEAAYFhgeMgYQABgWGB4yBRAhGKsCSOwxUK0OWJ8hcAN4AZABAJgBvwGgAfMGqgEDMC42uAEByAEA-AEBmAIJoAKyB8ICChAAGLADGNYEGEfCAgcQIxiwAhgnwgIGEAAYDRgewgIHECEYoAEYCsICCBAAGAgYDRgewgILEAAYgAQYhgMYigXCAgUQIRifBZgDAOIDBRIBMSBAiAYBkAYIkgcDMy42oAfeLbIHAzAuNrgHogfCBwcwLjEuNS4zyAc7&sclient=mobile-gws-wiz-serp#cobssid=s


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1907 Panic: J.P. Morgan and other Wall Street bankers stepped in to rescue failing banks and stabilize the stock market, leading to the creation of the Federal Reserve in 1913 to manage future crises.

The Great Depression: The Fed played a crucial role during the Great Depression, expanding its lending facilities to support banks and prevent further failures.



https://dn790003.ca.archive.org/0/items/pdfy--Pori1NL6fKm2SnY/The%20Creature%20From%20Jekyll%20Island.pdf<



1971 Emergency Loan Guarantee Act: Congress passed this act to provide government funds to any "major" business enterprise in crisis, marking another instance of government intervention.

Modern Era Bailouts: Savings and Loan Crisis (1980s): The government bailed out the savings and loan industry, costing taxpayers billions.



2008 Financial Crisis: The Fed, along with the Treasury Department, intervened on a massive scale to rescue failing banks and other financial institutions.



The Troubled Asset Relief Program (TARP) was established, authorizing the Treasury to purchase toxic assets from banks. The Fed also created several lending facilities to provide liquidity to struggling institutions.


Fannie Mae and Freddie Mac, major mortgage financiers, were also bailed out.

COVID-19 Pandemic: The Fed provided substantial emergency lending to support the economy during the pandemic.

Key Takeaways: The Fed's role as lender of last resort has led to numerous interventions in times of financial crisis.

Bailouts can be controversial, raising concerns about moral hazard and taxpayer costs.


The scale and scope of bailouts have varied throughout history, with the 2008 crisis being the most significant in recent times. Bailouts are often implemented to prevent systemic collapse and protect the broader economy.

The effectiveness and long-term consequences of bailouts remain a subject of ongoing debate and analysis.

http://take10charles.blogspot.com/2014/05/for-people-owning-too-big-to-fail.html<


For the People Owning the Too-Big-To-Fail Corporations By Charles Brown It is important to point out that the Too-big-to-fail banks and corporations did in fact fail back in 2008; even though they were bailed out. The demand the Wall Street rulers made to Washington for a bailout was a confession that the whole financial system was insolvent. The USA's, We the People's, bailout brought the finance system back from the dead. Capitalism does not add up. After 500 years, it ends up that capitalism is bankrupt and insolvent by its own generally accepted accounting principles. The shadowy finance ministers who ordered President Bush to bailout Wall Street, said that certain financial institutions are "too big to fail". If they fail they will destroy the financial system, and so the federal government must save them in order to avoid total economic disaster for America and the world. So, they were given trillions of dollars of what amounted to semi-gifts ( sort of "pay it back if you can at your own pace"; would that we could get such terms in loans from these same banks) , and the concept of "too-big-to-fail corporations" gained wide public awareness. Although, there was not total collapse , the bank failures that did occur triggered the so-called Great Recession. We, the 99%, suffered and suffer still enormously from that recession as it resulted in all around economic distress for tens of millions of Americans over the last six years. These failures of the leading private institutions of our Economy, led to an excruciating economic Depression for the Many. Large swathes of the middle and "lower" classes suffer poverty, foreclosure, unemployment, and the many ways of misery, premature deaths, disease, divorce, crime, etc, that are generated by economic downturn , especially in a jobless recovery only for corporate profits and exploitation by the 1% It is objectively true that this would have been worse for the 99% if the Too-big-to-fails had not been bailed out. So, it is not the case that these corporations should not have been bailed out, but that their Creditor, The People, should get more for their bailout money than they did: ownership of the big debtors. To reiterate,_circa_ 2008, with the insolvency of financial institutions designated Too-big-to-fails by our nation's highest financial ministers ( in other words straight from the horse's mouth), We, the People, learned of or were reminded of a category of economic life that had not been so explicit in the national discourse. These Big Banks were bailed out and avoided bankruptcy with guarantees or assurances of anywhere from $16 to 29 trillion by the United States of America, because the national unelected , financial ministers declared that their failure would bring down the entire financial industry of the US and perhaps "the West". In other words, the insolvency of the Too-Big-To-Fail corporations was in fact the insolvency of the whole financial system. It was a confession that capitalism doesn't add up; it fundamentally cannot meet its own standard of moral hazard. Wall Street's debts exceeded its assets by a dozen or two trillion dollars, at that historic moment. Any debtor of Wall Street creditors who reaches such a moment , must not be bailed out because of the danger of moral hazard. If we apply Wall Street's own standard to itself, the 2008 bailout represents the biggest moral hazard in history, pretty much. So, the principle of moral hazard is dead. General Motors and Chrysler, two of our largest corporations, though evidently an order of magnitude smaller than the Wall Street Too-big-to-fails, were also bailed because they arer too big to fail without devastating economic impact. . The bailed out Too-big-to-fails, owned and controlled and expropriated by the 1%, continue to live in fabulous luxury greater than any ruling class in history, There is a long history of government bailout of corporations ( (History of U.S. Gov't Bailouts http://www.propublica.org/special/government-bailouts http://en.wikipedia.org/wiki/Too_big_to_fail) The Great Recession caused many states ,including, California and Illinois, actual insolvency , though it was not declared; and they were bailed out of deficits by the Obama Stimulus plan. What is to be done now so many years from The Financial Big Bang ? Well, like the Big Bang, it is still affecting us. We, the People, who bailed out the Economy, must have ownership and control of all Too-big-to-fail corporations. Private owners , who put private interests above public interests always, cannot be trusted with control and distribution of the products of the Economy's Too-big-to-fail Economic Units, because their failure does not impact the incomes of the 1% current owners, but only the lives of the masses of people. The failure of Too-big-to-fails is dumped on the 99%, and avoided by the 1% who own them now. The 99% must own them, therefore. We must reverse the current circumstance in which , essentially, the Too-big-to-fails own The People, as demonstrated by their ordering the Presidents and Congress to give them dozens of Trillions of dollars without their giving up ownership of themselves in exchange as would occur in any such transaction in the "free" market. The Too-big-to-fails still owe the People for the Bailout. We, The Creditors, are coming to Collect. Enact a .law :requiring the Federal Reserve to report and list quarterly on all too-big-to-fail corporations, and initiate proceedings to take them over. Use the same criterion as was used in the bailouts. Enact a Law: One of the rationales for exploiting interests from debtors, recipients of loans, is that the creditor puts its money at risk. Since, the Too-Big-to-Fails will be bailed by the government if too many of their loans fail, their interest rates should be abated or negated, because they are not taking the risk they claim. Reassert federal ownership of General Motors and Chrysler. Chrysler has been bailed out twice by the federal government. Take Federal ownership of JP Morgan, Citibank, Wells Fargo, Goldman Sachs, AIG and all Wall Street, Too-big-to-fails. before they fail again.