Comment Re:The most underrated misconception of economics (Score 1) 940
And you realize the purported purpose of the bailouts was so people don't lose their life savings, homes, and businesses, right?
Emphasis on "purported". If the Fed or Treasury's priority was helping regular people they would have helped people pay their mortgages. Instead they threw money at the banks to make them whole, while letting Main Street get foreclosed upon. You can say the banks were forced to take the money, and they may have said that in public. But it doesn't hold up to assert that the banks didn't need the money. It obviates the whole bailout.
Finally, who's to say what the "correct" duration of time to hold a house is? If the banks really need the cash, they can put them to auction. And they frequently do.
But Drinkypoo's point is that they aren't selling the houses because they don't need the money because they are being propped up by the government.