You Ought to Be: 2008 Edition

Recap 2008: A lot of people made a lot of bets on securitised derivatives based on home loans. These securities were rated “AAA” or rock solid by the kinds of folks who rate these kinds of things. Bada Bing Bada Boom, turns out alot of those securities were put together specifically to fail; that sucks, but it’s a big scary world out there.

You pay your money and you take you chances.

But… Then came the bail outs.

Large Financial institutions and the very rich got money from the Fed to stay solvent.

People with pension funds now empty and with crappy mortgages got nothing.

Here’s the thing that ought to tickle your wtf bone,  “Fed Chairman Ben S. Bernanke’s unprecedented effort to keep the economy from plunging into depression included lending banks and other companies as much as $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages.

So Rich people and Middle Class people were in trouble because of rather dubious financial bets made on the backs of poor peoples home loans. The governments solution? Bail out the Rich people, with money that could have been used to secure the risky mortgages.

Good thing we didn’t go the route of securing bad debt, it seems to be working out swimmingly for us economically.