i don't want to come off as an apologist for the bank, i'm really not, but it's frustrating to see the left pick up right-wing populism. i've been trying to get these points across for years....

the government loaned the financial sector a lot of money, and it was spent in ways that could conceivably upset people. however, it was generally a relatively safe - and in fact profitable - investment for the state. the ones that were determined unsafe were shut down or merged into other companies. in the end, the state got back everything they lent out and made a very hefty profit on top of it - profit that could have been applied to setting up single payer, and perhaps might have been with a better president.

so, it's easy to see why that doesn't apply to homeowners. if the state were to step in, they'd merely be taking over a loan, at what would may, in the end, turn out to be a loss.

i don't like any of this. but, it's the actual truth of the situation.

http://www.youtube.com/watch?v=U2RX2kC5Keg

it's maybe a little ironic, given the content of the speech - because the lender of last resort was another new deal provision, designed to prevent the collapse of assets held in the bank.

let's say you have a modest nest egg of $20,000 in the bank. the bank defaults. that $20,000 is gone. up in air. and you don't get it back. ever.

that's why we need a lender of last resort. it's designed to prevent things like predatory institutions coming in and stealing your house.