The current income statement losses are “filled-in” by the taxpayers (numbers reported by the press) who end up owning assets which, over the long run, will pay back.
I guess it’s like owning a house. You overpaid for your house and you are upside down. You can’t pay your mortage and your uncle, because he’s a nice generous guy, buys the mortgage note.
No mater that you overpaid for the house or your uncle overpaid for the mortgage note, after enough time, your uncle, who bailed you out, will get his money back, at least in nomimal terms. It just might take a long time.
Don’t we all wish we had an uncle to bail us out? Oh, wait, we do. Uncle Sam.[/quote]
That’s an imperfect but reasonably good analogy.
And the Uncle Sam that’s bailing us out is… Us. And the specific “Us” that’s bailing us out is principally comprised of taxpayers in the top 10% of income earners, who collectively pay 70% of all federal income taxes (including SS and Medicare). And federal income taxes + SS + Medicare + corporate taxes comprise over 95% of all federal revenue. Now, I’m not complaining about this, I’m merely pointing out that it’s principally the top income earners who are financing this bail out. Which in many ways makes sense as arguably they – collectively – are the principal beneficiaries.
