| mrstickball said: Thank you, donathos. That was the point I was attempting to make. My analogy is this: If I make a dumb decision (buy something I may not need) and suffer for it (run out of gas) I do not get bailed out for it. You may argue that my dumb decision wouldn't bankrupt the system, but no single action in this whole mess ever bankrupted the system, either. In fact, the system is in the mess it is not because of one decision, but tens of thousands (if not millions) of homebuyers & credit card holders making dumb decisions - putting meaningless things (Taco Bell) before serious things (gas for work), and defaulted, causing the banks to hold toxic assets that won't be paid back. Because the banks hold such assets, they are being devalued since they....Aren't actually worth any value (too much liability by paying on things they've funded, with little income coming in from their investments). And forgive me if I live by the idea that if debt got us into this mess, that more debt cannot get us out. We are only trading private debt for public debt. And both are still debt - We're just moving the burden from the irresponsible that caused the mess, onto the responsible that have funds still intact. I don't think that's a wise trade. And I don't understand, Rath, if the banks went bankrupt because they were stupid....Why shouldn't they get hurt? Is our official motto being changed from 'Land of the free, home of the brave' to 'Get a handout, especially if your a retarded CEO'? |
The reason it a stupid analogy is because in your example it shows only harm to the stupid person which is a case where a bailout should not occur. You're assuming the only people who benefit from these bailouts are the CEOs and banks, in reality the only reason they bailed them out was because to not bail them out would have disastrous consequences for far more than just the bank.
I agree that the banks have been stupid and need to be punished, I just don't think letting the entire financial system collapse is the way to punish them because that ends up punishing everybody.
Also debt can strangely get you out, if you want look at WWII for a precedent. Huge spending can revive an economy.
