Matters of Circumstance

"The people split from slavery with Democracy.  It granted power until they learned to vote themselves money from the treasury.  Greed drove bankruptcy of financial, moral, and social reserves.   Democracy saved the people with slavery."  

A List of Government Bailouts Over the Past Century:

1932 — The Hoover administration creates the Reconstruction Finance Corp. to facilitate economic activity by lending money.

1933 — The Roosevelt administration creates the Home Owners' Loan Corp. to buy $3 billion in bad mortgages from banks and refinance them to homeowners to stem a rise in foreclosures. The government makes a small profit.

1971 — Congress saves Lockheed Aircraft Corp., the nation's biggest defense contractor, from bankruptcy by guaranteeing the repayment of $250 million in bank loans.

1979 — Congress and the Carter administration arrange for $1.2 billion in subsidized loans to bail out automaker Chrysler Corp., then the nation's 10th-largest company. There was no significant cost to the government in the end since the loans were repaid.

1984 — Congress effectively takes over the ailing Continental Illinois National Bank and Trust, which failed with $40 billion of assets. The Federal Deposit Insurance Corp. injects $4.5 billion to buy bad loans.

1989 — Congress establishes the Resolution Trust Corp. to take over bad assets and make depositors whole. Resolving the S&L crisis takes six years and $125 billion in taxpayer money — roughly equal to $200 billion in today's dollars.

1998 — The government brokers a $3.6 billion private bailout in the collapse of the Long-Term Capital Management hedge fund, although no government money is involved.

2001 — Congress authorizes $5 billion in cash after the Sept. 11 terror attacks to help shore up the airline industry and follows up with $10 billion in loan guarantees.

3.16.2008 — The Federal Reserve agrees to guarantee $29 billion of Bear Stearns' assets in connection with the government-sponsored sale of the investment bank to JPMorgan Chase & Co.

7.11.2008 — Federal regulators seize IndyMac Bank's assets after the mortgage lender succumbs to the pressures of tighter credit, falling home prices and rising foreclosures. The Federal Deposit Insurance Corp. says it will cost about $8.9 billion out of its $53 billion insurance fund.

9.2.2008 — The Treasury Department seizes teetering mortgage finance institutions Fannie Mae and Freddie Mac, temporarily putting them in a government conservatorship with plans to inject up to $100 billion into each.

9.16.2008 — The government announces an $85 billion emergency loan to rescue American International Group Inc., a major insurance company, in return for a 79.9 percent stake.

9.19.2008 — The Bush administration proposes a plan to let the government buy $700 billion of bad mortgages and other forms of toxic debt that have been weighing down U.S. financial companies. Government officials and lawmakers were still scrambling to put a deal together a week later.

9.25.2008 — The Federal Deposit Insurance Corp. seizes Washington Mutual Inc. — the largest bank to fail by far in the U.S. — and sells the deposits and banking assets to JPMorgan Chase & Co. for $1.9 billion.

Source: Wikipedia

~Dedicated to Au.