rogersails

Why It's Better to Bail Out Borrowers than Banks

On bailing out banks vs borrowers:
I've wondered if granting bailout money for banks involved an "understanding" that the banks would pass a piece of the money to borrowers in the form of mortgage workouts - with or without being compelled by the feds to do so. Is there any data comparing "bailout money" in vs "workout money" out at various banks ? Bailout money has been publicly well document. Workout money reports have been scattered and anecdotal.
If banks are passing some of the bailout funds through to borrowers, a lot of us would feel better about the current state of affairs. If the bailout funds wind up in the banks pockets while borrowers are still squirming on the hook, our darkest cynicism will have been validated.

Banks Return TARP Funds to Avoid Choking on Attached Strings

Interesting conversation:
Banks: "we need money or its the end of the world".
Feds: "Here's the money. Now stop paying bonuses"
Banks: "Never mind"