American Economy (thus world economy)

[Kasz216]

akuma587 said:

Kasz216 said:

akuma587 said:

blackbird3216 said:
what if freddie and fannie crashed?

Government won't let it happen because the results would be catastrophic.  It would be much worse than letting one of the major car companies in Detroit go bankrupt (which would probably be a good thing in actuality).

 

The thousands and thousands of Autoworker retirees who depend on the money they were promised to survive. (yet still get less then) disagree.

I mean where do we draw the line then?  They have obviously showed an incompetence second to none by backing themselves into a corner and nearing bankruptcy numerous times.  It is inefficient for the market to have the government baby them and strictly against a conservative economic policy.  Let the market correct itself.

 

Do you know what kind of turmoil it would put the market to pretty much screw those retirees out of their retirement benefits?  You'd basically be wiping out a lot of middle class people in one fell swoop.

People who did nothing to help the companies make the wrong decisions.

People would go from middle class... to bottom rung poor through no fault of their own.

It would be like what would happen when banks went out of buisness before the FDIC.

If they let one of those companies fail, the government would have to pick up the retiree benefits for the company that fell.