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People are undertaking sacrifices for the common good. We need to make them whole. To the extent we have the ability to make them whole we should be doing that
by KKKKkkkk1 7y ago
People are undertaking sacrifices for the common good. We need to make them whole. To the extent we have the ability to make them whole we should be doing that as a society,” Powell said. “They didn’t cause this. Their business isn’t closed because of anything they did wrong. They didn’t lose their job because of anything they did wrong.”
Why is it important if anyone did anything wrong or not? The world is experiencing a massive calamity and a lot of wealth is being destroyed. It's not obvious that you can make everyone whole without causing unintended consequences.
- LatteLazy 7y agoIt matters because after this crisis, in a few months time, we want them to go back to doing what they did before. You want people to go right back to opening businesses and getting jobs and buying houses, as quickly and enthusiastically as possible. More so if we can manage it. That's what prevents a crisis from becoming a depression.
- Proven 7y agoCorrect. The man premise of the article is there has been no moral hazard prior to this crisis. That's bollocks. Companies spent billions buying back shares counting on the Fed to save them, millennials gorged on student loans counting on debt forgiveness, etc. Virtually no one deleveraged from 2008.