Banking bailout explained

There has been a lot written to try and explain the banking bailouts, especially the Troubled Asset Relief Program (TARP). Recently, a lot has been made about these TARP loans actually being profitable for the U.S. government. Additionally, a few places have begun uncovering the actual cost of the bank bailouts.

Below is a video we found that attempts to explain the bank bailouts in a straightforward way. While it is definately done tongue-in-cheek throughout most of it, it raises some good questions. While we are not vouching for the validity of everything it claims, much of it sounds familiar to the massage we heard from former FDIC Chairman Bill Isaac when we interviewed him in July 2010, be sure to check out his comments as well.

After you watch the video and read what Isaac says, we would love to hear your thoughts on the subject. Were the bailouts necessary? Should TARP be considered a success?

About the Author
Michael McFarlin

Michael McFarlin joined Futures in 2010 after graduating summa cum laude from Trinity International University, where he majored in English/Communication. With the launch of the new web platform, Michael serves as web editor for the site and will continue to work on the magazine, where he focuses on the Markets and Trading 101 features. He also served as a member of the Wisconsin National Guard from 2007 to 2010.

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