The bank assets were long term US government bonds, they have a...

The bank assets were long term US government bonds, they have a face value, they are never worth zero unless the USA is bankrupt. The government didn’t cover losses of anything. This is absolutely nothing like subprime with the exception that banks are involved and in stress - the reasons are entirely different and the solution being rolled out is different.

This is a liquidity issue, not a debt issue - these banks have their customers money, it’s just tied up in long term structures that make it hard to get out quickly without losing money - but if they have time, they can. Time is the real key to this situation.

The change in FDIC rules for the discount window are zero-sum; the distressed banks get their liquidity, and it isn’t for free - ALL other banks PAY for it! They are using fees paid by banks into a big insurance fund to cover any costs and losses incurred.

If having insurance is socialism, well I wonder if you’ve insured your car or your house? The banks paid for this, they should be allowed to access it.