The sub-prime mortgage debacle that fuelled the current economic crisis has been devastating for a lot of people. But not all. We know that some actually made huge profits from it. A recent report reveals that some of these same people then made even more profits from the government’s bailout plans, using the low interest money they were given.
The news reporter says, “The fact that some investors who profited amid the financial downturn benefited from TALF could elicit questions about why a U.S. bailout using taxpayer money helped finance new investments for them.” She is living in a fantasyland. Questions are rarely raised about why the government goes out of its way to help the wealthy get even wealthier. Only policies that help poor people get that kind of close scrutiny.