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The U.S. taxpayer-funded rescue program set up to save banks from collapse during the financial crisis makes future reckless behavior more likely, the government’s bailout watchdog said in a quarterly report.A quarterly report to Congress on the $700 billion Troubled Asset Relief Program, or TARP, made available in draft form late on Saturday, said financial firms seen as too big to fail before 2008 have only grown larger as they feasted on subsidies from the bailout program.”To the extent that institutions were previously incentivized to take reckless risks through a ‘heads I win, tails the government will bail me out’ mentality, the market is more convinced than ever that the government will step in as necessary to save systemically significant institutions,” the report from the Office of the Special Inspector General for the Troubled Asset Relief Program, said.
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The true story behind Comrade Mario.
And in case you’re wondering, the music is Farewell of Slavianka performed by the Red Army Choir, written by the composer Vasily Agapkin in honour of the Bulgarian women bidding farewell to their husbands who left for the First Balkan War. The march premiered in Tambov in 1912 and was subsequently released as a single. Slavianka means “Slavic woman”.
So maybe giving those too big to fail banks the Ma Bell treatment. That way, no bail out will ever be needed. Maybe competition might even keep some of them honest.