One story that circulated around the time of the massive Government/Taxpayer bailout of the Banking and financial sectors at the time of “The Great Recession” really getting to “full tilt boogie” status went something like this:
Obama was just getting inaugurated, but both the McCain people and the Obama people were brought into the loop by the outgoing Bush economic team and it was eventually agreed upon by all that, as offensive as it was to some, one of the core priorities to stop the bleeding was to bring the banking and financial sectors (IE Wall Street at the upper echelon levels) back to profitability, back to normalcy. Which of course took an inordinate amount of questionable and none to transparent finagling and all kinds of guaranteed loans, 0% govt. loans, grants, subsidies, etc. etc.. Matt Taibbi wrote some of the very best expose essays on this subject early on and I think most of his analysis and reporting has come to be bourne out as “mostly true”. There were a lot of reasons for this, and it worked out pretty well for “The Street”. Bonuses were back to pre meltdown “norms” by the middle of 2008, I believe… long before most Americans even knew what fan it was that was blowing the shit on them. At any rate, it was early on that this under-reported network of “bailouts” was successful. So successful that I remember reading and being astounded by the little nugget that by mid 2009 the Real Estate market in the Hamptons had pretty much recovered and was back to “bid’ness as usual” and no harm no foul status. Again, most of America was just discovering what had hit them.
But my point in bringing this up is not to wring hands over the stanky awfulness of what went down. Rather it is to bring up the need to use the same model as a key component to a multi pronged “National Student Loan Forgiveness Act”.