| Kasz216 said: You know the Herbert Hoover thing really doesn't make any sense. I mean... we have the FDIC now. So a bank failing doesn't hurt the "little guys" in that regard. Also during the beggining of the Great Depression their was tons of credit out there... even with banks failing. It's just nobody wanted to borrow. That's why FDR's Kensyian polcies really didn't do anything other then give people "hope". The poor didn't end up spending most of their extra money. They saved it. Food prices and other stuff were dropping. Currently those prices are inflating due to the global food crisis. Basically the hope on this plan succeeding is hoping that poor people are a lot stupider with their money then they were during the great depression. |
American stupidity and foolhardiness with their money is one thing you can count on always Kasz. Consumer spending has already started to pick up.
And you bring up a perfectly good point with the FDIC. If all these banks did fail, the government would be on the hook for EVERY BANK ACCOUNT that failed along with them. That amount is probably higher than the amount paid out to bail out the banks. And the bailout money can at least be paid back (and some banks are already starting to pay it back http://www.abcnews.go.com/Business/Politics/Story?id=7337061&page=1 ). The government would probably have had to spend MORE money if it hadn't bailed out the banks than if it had let them fail and the FDIC stepped in to payback all those insurance policies.
So anyway you look at it, the government was going to be paying out a shitload of money. To claim that we would have spent less money if we wouldn't have bailed out the banks is extremely myopic and shows a misunderstanding of the banking system.
We had two bags of grass, seventy-five pellets of mescaline, five sheets of high-powered blotter acid, a salt shaker half full of cocaine, a whole galaxy of multi-colored uppers, downers, screamers, laughers…Also a quart of tequila, a quart of rum, a case of beer, a pint of raw ether and two dozen amyls. The only thing that really worried me was the ether. There is nothing in the world more helpless and irresponsible and depraved than a man in the depths of an ether binge. –Raoul Duke
It is hard to shed anything but crocodile tears over White House speechwriter Patrick Buchanan's tragic analysis of the Nixon debacle. "It's like Sisyphus," he said. "We rolled the rock all the way up the mountain...and it rolled right back down on us...." Neither Sisyphus nor the commander of the Light Brigade nor Pat Buchanan had the time or any real inclination to question what they were doing...a martyr, to the bitter end, to a "flawed" cause and a narrow, atavistic concept of conservative politics that has done more damage to itself and the country in less than six years than its liberal enemies could have done in two or three decades. -Hunter S. Thompson
