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View Full Version : explain the bailout



drdolittle
5 Dec 2008, 12:35 PM
Let me see if I have this right.
The treasury borrows money in the taxpayers name,
gives it to banks so
they can lend it to the public at a profit.
Justifying this as the economy will grind to a halt if banks are too insolvent to lend. I suppose justifying giving it to the existing banks under the premise that "they know what they're doing, experienced, etc"

If I'm wrong, please correct me. Please correct me.