4 ms·
Aside from the moral hazard, you are right. But most of the histrionics about bailouts, particularly the 2008 bailouts, are often based more on feelings than fa
by cycrutchfield 4y ago
Aside from the moral hazard, you are right. But most of the histrionics about bailouts, particularly the 2008 bailouts, are often based more on feelings than facts.
- bumby 4y ago>are often based more on feelings than facts. This is how it's being framed on many news networks as well. But I don't know if I quite buy it; maybe you can clarify. The 2008 was considered "different" because it was essentially driven by a bunch of bad bets on sub-prime mortgages. In contrast, this current one is being framed as just ensuring depositors. But that assurance is needed because the banks made bad bets on the bond market. Are the two really fundamentally different?
- cycrutchfield 4y agoWell, when SVB got its “bailout”, what happened to its shareholders? They got wiped out. The people that made the bad bets didn’t get rescued.