Taxes are at the bottom of this as is the cost of having the money created to pay the taxes ( interest on debt money).
Actually a new bond that Ford suggests is not draining money from the economy it is just adding to it just without the interest element. It does in effect dilute the value of the money already in existence but thast is also the case with how the money is loaned into existence by the banks today. the effective money supply inflates in both cases.
The very public cost of the bail outs of the banks have been very galling to the public due to several reasons.
First the apparent lack of humility of the banks. This crisis is seen to be and i think rightly so, to be a crisis of their own design.
Second the Banks were quick to re open business as usual on the Gravy train created by the Bail out money from QE
whilst letting the rest of the real economy or Main street go to hell.
thirdly the combination of austerity measures and tax rises that have been the further cost to the citizens of the countries that have been involved in the system, most dramatically in the bailed out countries.
Finally it would seem even with the huge price extracted for their services the Banks are still insolvent and are now intent in forcing perfectly prudent borrowers into distress by collapsing markets for real property by strangling the money supply and foreclosing to meet the 3rd party obligations ( CDO’s) that should never have been entered into in the first place.
More regulation may have kept a degree of sensible prudence in the system and it is also the case that more prudent systems of raising government spending should also have been adopted . They were not as in short, being more transparent politicians don’t like them it would keep them accountable for their promises.
It really is a case of a plague on both their houses but just because both sides of the equation need to be addressed does not mean that it can not be solved. Someone pointed out possibly elsewhere in this forum that Bankers and Politicians seem to be the only people that do not accept responsibility for their actions they always claim either the electorate or the borrowers demands made them do it.
So Judder Bar it would seem that this is the root of this problem , who is the guilty party or is it a faustian pact in which the contracting parties agree to send the unsuspecting third parties soul to hell. it remains to be seen if that sort of promissory note has any worth in this real world maybe not even at the end of the barrel of a gun.