Quote from: exstasie on September 13, 2020, 11:31:34 PM

The 2008 crisis was more about fiscal policy and relief than the Fed, and on paper TARP wasn't even that bad. Failing bank executives walked away with fat bonuses sure, but when all was said and done and the TARP loans were paid back, the government ended up profiting.

What's currently happening actually pisses me off more. People bitch and moan about poor people getting handouts, but it's middle class homeowners who really get all the handouts. They already get tax subsidies out the wazoo, now they're getting 6-12 months complete deferment on mortgages (probably more coming down the road too) while poor people at best are racking up debt if they can't pay the rent. Not to mention the insane overpayments for unemployment benefits.

The primary reason the Fed is propping up the stock and housing markets is to bail out the middle class, whose entire net worth is generally held in their house and the stock market via retirement accounts. It's not just for the rich. It's to entrench and secure the wealth of everyone but the working class and poor, who don't own anything. The system is set up to subsidize capital and property owners, same as it ever was. Let's not pretend this is about the 99% vs. the 1%, or bankers vs. everyone else.

Governments have cornered themselves and politicians think they have no choice but bail out the middle class, after all it is known that when a huge economic crisis strikes the most affected of all is the middle class, the rich will keep being rich after the crisis since most likely they have business that produce value and positive cash flow and ways to store value like real state, precious metals, jewelry or works of art. Those that are poor while they do suffer because of an economic crisis they had little or nothing to begin with so their living standards are not as affected.

But the middle class goes from having many comforts to become poor because as you say most of their wealth is on their houses and that for the most part are not even paid off, so if they were to lose their place of residence they will lose all of those payments made over the years and most likely they will lose their jobs at the same time making them desperate in the process and when you add that the US is in the middle of a political campaign to elect the next president is is obvious Trump will do everything in his power to avoid the collapse of the middle class or he will have no chance on the next elections.