Reverse Robin Hood

The Bailout Helps Fuel a New Era of Wall Street Wealth

The New York Stock Exchange, September 2008. The Wall Street Bailout was supposed to fix the credit markets and, in turn, the rest of the economy. But credit isn’t flowing and U.S. unemployment tops 10%—while the bank rebound. | Justin Lane / European Pressphoto Agency via NY Times

Graham Bowley, The New York Times | Full Story | How can some banks be prospering so soon after a financial collapse, even as legions of people worry about losing their jobs and their homes?

It may come as a surprise that one of the most powerful forces driving the resurgence on Wall Street is not the banks but Washington. Many of the steps that policy makers took last year to stabilize the financial system—reducing interest rates to near zero, bolstering big banks with taxpayer money, guaranteeing billions of dollars of financial institutions’ debts—helped set the stage for this new era of Wall Street wealth. >>

Published 09.10.16 00:00:00 -0500 GMT | Posted by Andrew Garib on 09.10.19 | |

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