Quote:
Originally Posted by Relentless
You either didn't read the article or didn't comprehend it.
It's a story abut a guy who tracked the financials of the banks and tracked all the bailouts of the banks when he was working for one of them. He bet against them because even with all the bailout money the banks would STILL have failed. What he and 99.9999% of investors did not know and could not have known is that the government also secretly loaned banks unlimited amounts of money (that cost Trillions of dollars) and guaranteed them privately that they could continue borrowing whatever they needed to stay afloat.
The banks made billions in profit by doing it. The government under Bush and under Obama lied about the financial security of the markets -- and people who made properly calculated investments lost millions because they were lied to and could not have known trillions of dollars beyond the bailout programs publicly announced were also being handed over by the Fed.
This isn't some idiotic conspiracy theory, it was finally discovered by Bloomberg when the US Supreme Court ruled that the government couldn't keep it a secret any longer. Had Bloomberg not won that suit nobody would ever have known...
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I read the whole article. I'm not overly outraged. Over here our government stepped in and literally GUARANTEED they wouldn't fail. Tough luck if you were shorting them. Yeah it's a bitch it wasn't announced but really if you're shorting banks during a crisis and NOT looking out for the government bailing them out, you're an idiot who deserves to lose their money. Yes it's highly uncool the bank executives knew this information and the market didn't even though some banks did announce it (if you were a good advisor in that sector you would have noticed the smaller banks announcing government support) Not arguing that, there is unfairness there, but it's a known unknown. If you didn't realise something like that was going on after they got bailed out the first time...............