Matt Yglesias and Kevin Drum say the right thing about revelations that
big banks got very easy terms during the 2008 financial crisis: the
real scandal isn’t so much that those banks got rescued as that the rest
of the population didn’t.
Recently, in an article for Slate titled “How the Fed’s Generosity Made
$13 Billion for America’s Biggest Banks,” Mr. Yglesias writes: “It was
always clear that massive emergency lending of some kind was going on
and also that some people would regard this lending as a dastardly
‘bailout’ that kept banks in business. But what’s really coming into
view now is that this lending was not at a penalty rate. It was
ultra-cheap money that allowed banks to earn profits designed to help
resolve fundamental solvency problems.”
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