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Okay, but you understand that the bailouts are not for them, right? It’s for their lenders that would never get repaid otherwise. The bailouts let them charge h
by jl2718 5y ago
Okay, but you understand that the bailouts are not for them, right? It’s for their lenders that would never get repaid otherwise. The bailouts let them charge high-risk interest rates with zero actual risk.
- Sporktacular 5y agoNo, the bailouts are directly for the borrowers. Just as bailing out an airline keeps the airline alive, not indirectly the creditors funding it. Of course the effect is on both but I'm avoiding definition torture. But risk externality is a good point. Maybe one that needs addressing with a return to reasonable regulation, reigning in speculation/predatory lending, Glass-Steagall etc.