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You're saying we should get rid of the financial industry? What, because we're all so good at managing our own money? Guaranteeing the big banks can't fail is
by BFatts 9y ago
You're saying we should get rid of the financial industry? What, because we're all so good at managing our own money?
Guaranteeing the big banks can't fail is how we keep the economy going. If a bank fails, everyone that is owed money by that bank fails too. Is that acceptable? Would you be fine with your employer going belly up because the bank they rely on can't pay out money?
- rorykoehler 9y agoThe bailout money should be distributed as an equal dividend to each individual person in the country and the rest should be allowed play out.
- mrchucklepants 9y agoGuaranteeing the big banks can't fail is a source of moral hazard, removing the cost of being wrong from those taking the risk and transferring it to the general public. Make the banks responsible for the negative consequences of their actions with no potential for bailout, and watch their behavior change.
- mowenz 9y agoThis is exactly right. Just to address the above poster: vanilla banking could still be guaranteed. By contrast, in essence the Fed is guaranteeing the banks' risky investments.