HappySqurriel said:
Viper1 said:
akuma587 said:
So do you really think letting 60-70% of the major financial institutions fail would have been the best thing for the economy and would have allowed the economy to recover faster?
Many of them were just in a temporary rough spot. Some of the banks that people were saying "needed to fail" have posted a profit this quarter. |
Absolutely. All we've done is taught people and companies that amoral spending and policy is inconsequential. That Big Brother will be there to put on the band aid.
When my kids ride a bike, fall and scrape their knee I encourage them learn to ride better and use knee protection. This country has become a little kid with short term memory loss and no economic moral barometer and is skinning their knees every day and asking Uncle Sam to kiss the boo boo and make it better. It's pathetic.
"Too big to fail" is exactly what those banks and the government want you to think. Let those banks fail, throw their presidents in prison, let banks that didn't fail buy up the mortgages from the failed banks and let the market heal itself in a year or two instead of a decade or two or with a continually overinflated bubble.
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Yeah ...
A lot of people don't understand that (potentially with governmental support) Bankrupcy courts could have dealt with these problems fairly well, and it probably would have been healthier result in the long run. The second a bank (like Citibank) "Failed" it would enter Chapter 7 bankrupcy and its assets would be sold off at competitive rates in order to pay off the liabilities ... For the most part these banks were very healthy so most of the divisions would be bought by healthy well managed companies who want to develop or expand their involvement in banking, and even the toxic assets would be (quickly) bought because they would be discounted to a level where investors would see the potential-return worth the risk of the investment.
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It's truly frightening how much we agree sometimes...although I rarely post to say it....
I remember back when we used to be accused of being the same person...sometimes I wonder myself =P
