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Every business wont simultaneously collapse. Besides, isn't one of the core tenants of Capitalism that those who are able to adapt and overcome will prosper?

• closeparen 6y ago
  As irresponsible as it was to let a handful of banks become too big to fail, they really were, and that was just a subset of the financial sector. The blast radius of the "leaving the house" sector is best described by your favorite zombie movie. The economy can feel like a bunch of remote fatcats, but at this scale that model breaks down. It's everything, everywhere, that isn't done by either you personally or mother nature. We should bail it out and prop it up because we like having those things. What exactly is wrong with bailouts? Moral hazard is the main one. I don't think my neighborhood coffee shop will take its payout as a license to start breeding bats. Inefficiency can be a concern. Maybe the economy would perform better if all the real estate and capital equipment made its way to smarter managers, who would not make such stupid mistakes as... business models that involve physical presence in any way? The survival of the fittest thing is about competition. Capitalism is pretty quiet on the issue of shocks that hit all the competitors equally. That's why we've had monetary and fiscal policy for a while now. This would be a hell of a time to give them up.