8 votes

Why Did The Big Banks Get Bailed Out In 2008 While The Middle Class Lost Jobs And Homes?

{Editor’s Note: This is the 16th installment of a series of articles attempting to address the 32 questions posed by Ron Paul in his recent farewell speech given in front of Congres}

In late 2008, many of us had our first experience with a major financial crisis. The housing bubble popped resulting in millions of Americans losing their homes while some politically connected bankers received billions in bailouts. Lehman Brothers' bankruptcy, the bailout of AIG, and a few days of 400+ point drops in the Dow led to a $700 billion bailout package presented by the very same wise rulers who didn't see the crisis coming in the first place.

The first iteration of then-Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke's bailout plan failed in the House on September 28th due to an overwhelming response from American citizens. Trusting their gut, and not the bankers or politicians, Americans sent thousands of emails and phone calls to their 'representatives' in protest of a bailout that Rep. Jim Bunning (KY) called 'financial socialism and un-American.' But then, on October 3rd, as they usually do, the bankers and the politicians got their way -- and hundreds of billions in loot from the taxpayer. Thirty-three Democrats and twenty-four Republicans who had previously voted against the bailout supported the banker heist on the second vote. Maybe the threat of martial law had something to do with it.

Despite former Goldman Sachs CEO Paulson and Chairman Bernanke's reassurance that the fundamentals of the economy were sound, there were plenty of economists who saw the crisis coming. Peter Schiff made Youtube fame with a collection of hits where he predicted the bursting of the housing bubble -- while being laughed at. And the good Dr.Ron Paul was praised on MSNBC for accurately predicting the crisis in 2003. These Austrians and many others are set to appear in a Spring 2013 documentary The Bubble, which sets out to explain what happened and why. An event that resulted in $7.38 trillion in homeowner losses deserves a good explanation, right?

Continue Reading

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

My Answer to #16

Because the big banks are just branches of the international banking cartel. This cartel, like all cartels have 1 primary purpose…to generate profits. From a profit point of view it would be illogical to distribute money created out of thin air to the American people when the banks can add it directly to their own bottom line. As an added benefit when people begin to default on their homes and lose control of other physical assets, the banking cartel can then move in and capture those assets for pennies on the dollar which increases both their bottom line and their power over our Government.

All my answers are here:

For communism to work

the middle class must be obliterated.


the system was going to crash (acutely) if they didn't do TARP.

so, either we the people were going to lose, or they were....since they ran the slot machine, house wins.

now, if we didn't do TARP, we still would have felt the pain, but it would probably be over by now, yet they would have lost A LOT and the playing field would have been leveled.

instead, we are looking at a currency collapse sooner than later and either a. hyperinflation, or b. stagflation on steroids via. japan style for years to come.

meanwhile, the elite crooks will continue to game the system with their "fiscal cliffness", capitalizing on inflation and the destruction of the dollar.


The system is in intended to screw the lower and middle class.

If only we can get progressives

If only we can get progressives to realize that it is their system that destroys the poor and middle class they so often claim to represent.

Too bad to them progressivism is more of a religion that a logical position.

*Advancing the Ideas of Liberty Daily*