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- A tumblr site dedicated to the people and places that make up Oregon and Southwest Washington.
I can attribute much of the current "surprise" about the financial results of the TARP/bank bailout program to the sense that the initial $700 Billion was a gift or grant to banks, when it was in reality a loan, or at least preferred stock purchased by the Federal government. The term "bailout" was slapped onto the program very early in the discussion and I think the public perceived the government as being much more financially generous that it actually was.
It's important to differentiate between "TARP funds" which were basically loans, and "stimulus funds" which are outright goverment spending.
While the incursion of goverment into financial markets and the economy in the last year was very significant and broad, the confusion between "gifts" and "loans" only made it seem more drastic than it really was.
posted 3 years, 5 months ago
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