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>someone with more money is less likely to become a political problem that shuts down the market, or a drain on the public purse, when they lose money. laughs
by omegaworks 5y ago
>someone with more money is less likely to become a political problem that shuts down the market, or a drain on the public purse, when they lose money.
laughs in 2008 securities crisis
- lazide 5y agoA lot of ‘08 was because it impacted the every day Joe quite a lot. If prices drop because people can’t get mortgages, and people can’t pull money out of their bank because the bank is insolvent? Those are now people who don’t have the HELOC they though they had, or their primary asset for retirement is now worth half of what it was, or can’t or won’t use the savings available when they need it - and also the people getting laid off because other Joe’s aren’t spending money or buying houses anymore. The banks are at the center of this. Many big banks were nationalized for awhile, Lehman was blown up, Fannie and Freddie were taken over. Not because they had more money. Rather because they were at the center of the crisis that touched assets almost every American owned - and had more money because of it. If this only impacted folks with > $1m net worth, it would have looked a lot different.