The problem is that when the banks lose, savers and taxpayers are forced to fund their losses, either via below-inflation rates (ZIRP) for savers, or via increased taxes to pay for TARP, TALF, and their certain sequels.
So, at the end of the day, it is savers and taxpayers who are penalized to allow imprudent people to live beyond their means.
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The problem is that when the banks lose, savers and taxpayers are forced to fund their losses, either via below-inflation rates (ZIRP) for savers, or via increased taxes to pay for TARP, TALF, and their certain sequels.
Jan 09 12:49 pm
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All Comments by prudentinvestor »Cramming Down - On Whom? [View article]
So, at the end of the day, it is savers and taxpayers who are penalized to allow imprudent people to live beyond their means.