tag:blogger.com,1999:blog-6915905970671706170.post1418885552824558023..comments2023-10-26T03:19:55.482-07:00Comments on multum non multa: Why do we have brakes on a car?fChhttp://www.blogger.com/profile/08007305273044171670noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-6915905970671706170.post-76732345501670963712012-12-26T05:19:49.340-08:002012-12-26T05:19:49.340-08:00
Despite the rhetoric of market absolutism by ever...<br />Despite the rhetoric of market absolutism by every U.S. President in the period 1981-2008, Washington had to bail out the financial services industry nine times, even as it cancelled many of the financial regulations that governed the industry.<br /><br />1. In 1982, the Federal Reserve and Treasury bailed out U.S. banks holding Mexican, Argentine, and Brazilian debts.<br /><br />2. In 1984, Continental Illinois received a $4 billion rescue package.<br /><br />3. In the late 1980s, the Federal Reserve paid out large loans to save 350 banks that later failed.<br /><br />4. Between 1989 and 1992, the U.S. Congress provided $250 billion to support hundreds of insolvent savings and loan institutions.<br /><br />5. In 1990-1992, federal banking authorities provided $4 billion to save the Bank of New England and arranged for Citibank to get capital from Saudi Arabia.<br /><br />6. In 1994, the Congress provided Mexico a $50 billion loan to bail out Goldman Sachs and other U.S. financial institutions that had bought high-yield Mexican debt.<br /><br />7. In 1997, the Treasury pushed the International Monetary Fund (IMF) to rescue East Asian currencies in order to save American lenders.<br /><br />8. In 1998, the Federal Reserve saved Long-Term Capital Management, a massive hedge fund whose investors included leaders from the U.S. finance industry.<br /><br />9. In 2008, taxpayers bailed out Wall Street with TARP and actions by the Federal Reserve.<br /><br />There will be a 10th. The only question is why, when and how much.Pat Choate--Washington, VAnoreply@blogger.com