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Originally Posted by mgruber
No banks? Do you realize how many banks there are in this country? On the order of thousands. I think we're a long way from that.
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It's a ripple effect. Even with the huge bailouts, every week I read that one or two more are going under. If the bailouts were not to happen, many more would be going under, which would cause people to run to their banks to get their money out, which would in turn cause even more to go under. Without the bailouts, you would see most banks in the US go under, including the big three (Bank of America, Citi, Chase).
The taxpayers would end up paying the bill anyway because of the FDIC, which would end up having to reimburse all the lost deposits.
As I posted in another thread, the only solution for the banking industry is nationalization.
Personally, I am against any kind of "bailout". If the government wants to use my tax money to purchase companies, then fine. But just to give my tax money away to these private companies -- that I am surely against.
02-16-2009, 06:32 PM
They should just let the weak companies die. Unfortunately for the finanicial sector, just about all of the banks would go under. Wonder how well our economy would operate with no banks.
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