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"Not letting them fail" does not necessarily mean that investors in those institutions won't be taking a bath.
by caf 11y ago
"Not letting them fail" does not necessarily mean that investors in those institutions won't be taking a bath.
- CamperBob2 11y agoExactly. After learning from his mistake with Chrysler, Gibbon1's dad might have bought GM's bonds, and gotten hosed yet again. Oops.
- Gibbon1 11y agoChrysler was 1979, GM was 2008 totally different political economic climate. In 1979 ordinary businesses and unions had a huge amount of political clout. And Chrysler wasn't an ordinary business. By 2008 only Wall Street investment banks had that clout. That's because under neo-liberalism the profits from the real economy are funneled through the investment house. Letting them go under means the spigot gets turned off.