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by thinkcontext
3201 days ago
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Buying stock was only a small part of what the government did for the finance industry. Guaranteeing money market funds, opening up the discount window, bailing out AIG and paying off counterparties at 100%, sinking $100B+ into Fannie and Freddie, etc. The government had essentially given the finance industry an insurance policy before the crash that paid off during the crash. And you are right, they didn't have to pay for it in money, perhaps its possible to argue that they paid for it in regulation. If the firms had had to buy such a policy on the open market what would the price have been? |
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