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Name that Bail out

kuzi16kuzi16 Posts: 14,633 ✭✭✭✭
my brother runs a blog. today's post:Name that bailout reads as follows:

Guess which government this paragraph is about:

Following a pattern it had set in earlier bailouts of smaller banks, the government set up a holding company, which it financed together with the central bank. This company acquired all the corporate shares held in the portfolios of the banks at the higher historical, not current prices. Thus, the government not only provided liquidity to the banking system, but it also absorbed part of its losses. It also became the largest shareholder in a number of firms. Many of the industrial firms thus acquired were themselves on the verge of failing and benefited not just from the rescue of their banks but also from the direct infusion of public money… The cost of the entire bailout was a staggering 10 percent of GDP — the comparable amount in the United States today would be about $1 trillion.

The quote is from Saving Capitalism from the Capitalists, by Raghuram G. Rajan and Luigi Zingales, p 213. The bold bailout was by Benito Mussolini. The results were as corrupt and as anti-competitive as you could probably imagine

scary isnt it?


  • Bad AndyBad Andy Posts: 848
    What gets me about this that the people do not want it. CEO's and Economist have chimed in against it. But it gets voted in anyway. John 'The Maverick' McCain voted for it. WTF...some maverick he is. This sickens me...my grandkids will end up paying for this unless someone stands up and does something. How much longer till we will be the USSA.
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