No More Bailouts? Riiiiight.

It appears the American Taxpayer is going to be on the hook for another bailout. From CBS Money Watch:

U.S. taxpayers may be on the hook to bail out big banks — again. The Financial Times is reporting that taxpayers will subsidize a large portion of the $25 billion mortgage settlement, which was broken down into two distinct pieces:

1. $5 billion in cash payments, of which $1.5 billion would go directly to approximately 750,000 borrowers who were wrongly or illegally foreclosed on between September 2008 and December 2011. This is the part where you have heard that borrowers who were wrongly foreclosed on could receive up to $2,000.

2. $20 billion in “credits” the banks will receive for principal write-downs and other aid to nearly 1 million homeowners at risk of default, up to $20,000 per loan.

I don’t have so much of an issue with the first part, if someone was put out of their home illegally? Fine, they should have some recourse. But when taxpayer money is being used to ‘incentive’ banks to forgive, write-down, or do whatever to save troubled loans they either made or bought? Yep, that’s a bailout.  Will this ever end?

Remember back in July, 2010 when that one really famous guy said “There will be no more taxpayer funded bailouts?” I do. Go to 4:15 and wait for it.

Unbelievable.

(h/t @JayCaruso)