How You Pay for Financial Crises That Make Banks Rich

Описание: We assume that financial crises are caused by banking mistakes and that government bailouts are necessary emergency measures to prevent economic collapse because we see congressional hearings and regulatory responses that appear to hold institutions accountable. This seems logical because crisis response policies are presented as technical necessities designed to stabilize markets and protect ordinary citizens from financial system failures. But the crisis capture mechanism works by creating emergencies that justify transferring public resources to private interests while presenting these transfers as necessary for economic stability - financial elites receive bailouts and policy support while ordinary citizens bear costs through foreclosures and austerity measures. What happens when the institutions that caused the crisis are the primary beneficiaries of crisis response policies designed to rescue them?

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