from @csissoko https://syntheticassets.wordpress.com/2018/09/16/why-claims-that-the-2008-bailout-was-a-success-should-make-you-angry/ ht @ryanlcooper
Text: Forcing lenders to come to the table on the basis of economic reality is something that every collateralized borrower can do - except for the little guy whose only collateralized loan is on his/her primary residence. Fixing the cramdown inequity was one of President Obama's promises before he was elected. But lo and behold Treasury staffers in his administration "stressed the effects of cramdown on the nation's biggest banks, which were still fragile. The banks' books could take a beating if too many consumers [were] lured into bankruptcy by cramdown " (Kiel & Pierce 2011). Treasury's position on this should be read: we need to bail out the banks, so we can't allow the economic reality of the situation to affect the cut that the banks get.