The Cost of Our Choices

I read Matt Taibbi’s Griftopia last year and one comparison stood out about the scale of the bailout money given to Wall Street banks vis a vis the US housing market. It turns out this comes from Nomi Prin’s, It Takes a Pillage. Taibbi gives the full quote in his latest mailbag post at Rolling Stone:

Here are some numbers for you. There were approximately $1.4 trillion worth of subprime loans outstanding in the United States by the end of 2007. By the first quarter of 2009, there were foreclosure filings against approximately 4.4 million properties. If it was only the subprime market’s fault, $1.4 trillion would have covered the entire problem, right?

Yet the Federal Reserve, the treasury, and the FDIC forked out $13 trillion to fix the housing “correction”… With all that money, the government could have bought up every residential mortgage in the country – there were about $11.9 trillion worth at the end of December 2008 – and still have had about a trillion left over to buy homes for every American who couldn’t afford them.

What a simply stunning display of mistaken priorities.

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