Everyone’s beating up on the ZOMG EVUL CAPETALISTS for the credit and housing market bubble, and living for years off of inflated and largely imaginary gains.
How come nobody ever mentions the money raked in by the government in capital gains taxes, income taxes, and other assorted tax burdens attached to those inflated gains? I mean, Madoff for example sent out statements every year that people incorporated into their tax filings, and they dutifully paid applicable taxes on declared income, inheritances, or capital gains that didn’t really exist.
The biggest beneficiary of the whole credit bubble excess isn’t Madoff, or Bear Stearns, or some group of hedge fund managers toasting each other’s perfidy back at the country club. It’s the government on the federal, state, and even local level. We’re talking hundreds of billions of dollars in tax money here. Regardless of the government’s culpability (or lack thereof) in bringing about or encouraging the subprime bubble, it was the biggest beneficiary of it by far.