Don’t Blink, or You’ll Miss Another Bailout

[Galileo]

Don’t Blink, or You’ll Miss Another Bailout

Here’s the skinny: Late last Wednesday, the New York Fed said in a court filing that in July it had released Bank of America from all legal claims arising from losses in some mortgage-backed securities the Fed received when the government bailed out the American International Group in 2008. One surprise in the filing, which was part of a case brought by A.I.G., was that the New York Fed let Bank of America off the hook even as A.I.G. was seeking to recover $7 billion in losses on those very mortgage securities.

It gets better.

MORE:

http://www.nytimes.com/2013/02/17/bu...ayspaper&_r=1&

[Latarian Milton]

should just let the banks fall and see what catastrophic results will follow, tbh i won't expect anything much worse than what it already is. the financial system is broken and fragile but the government would still try everything to keep the alive. it's like a patient with terminal cancer and the government uses medical ventilator to keep him alive, it may give him a few months extra life but it'll cost us more in the end