It was clear to at least some of us that many aspects of the financial bailouts during the fiscal crisis of 2008 and afterward were designed to help foreign banks and investors. I believe the AIG bailout and the federal takeovers of Fannie Mae and Freddie Mac were at the bidding of overseas investors. Here’s a more detailed look at how the bailouts and quantitative easing have helped foreign banks and investors.
Too bad that quantitative easing doesn’t help Main Street or the average American. It only helps big banks, giant corporations, and big investors. And by causing food and gas prices skyrocket, it takes a bigger bite out of the little guy’s paycheck, and thus makes the poor even poorer.
And it’s a shame that a study of 124 banking crises by the International Monetary Fund foundthat bailing out banks which are only pretending to be solvent – like most of the big banks – harms the economy.