ST Alpha - "Here's my opinion on the bank bailouts: It had to be done to stabilize the economy. If these "too big to fail" institutions had failed we'd be in " (Reading a Post)

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Here's my opinion on the bank bailouts: It had to be done to stabilize the economy. If these "too big to fail" institutions had failed we'd be in

Posted by TWuG Dec 14 '09, 08:59

another depression.

IF they had been dismantled or new regs had been put in place at the same time, the recovery would have been stunted or negated because the banks would have gone into "zero risk" mode while they figured out how to play under the new rules.

Better that new regs come a year from now after things are stabilized. When futzing with the rules and looking at separating banks into components won't exacerbate an already twitchy economy.

If those regs and dismantlings DON'T happen, I'll be pretty damn pissed. But right now I think what needed to be done has been done.

Responses:

Did you see the recent report that showed some 300 billion dollars were laundered by the banks? -- nm - Beryllium Dec 14, 09:17
The bank bailouts didn't stabilize the economy, they stabilized the banks. And for months after the banks were stabilized, the economy was still - Loyola Dec 14, 09:07 7
- And where do you think the economy would be if the banking system went belly up? Getting the banks staqble allows the economy to stabilize. - TWuG Dec 14, 09:11 5
  - Well let's ignore for a second many of the investment banks had to actually register to become "bank holding companies" so as to receive TARP funds. - Loyola Dec 14, 09:17
  - That would have been a good opportunity to create a nationalized bank -- nm - con_carne Dec 14, 09:13 3
    - Horrible idea. -- nm - TWuG Dec 14, 09:15 2
      - Please explain how this would be so very different from, say, repeatedly bailing out private banks with strings attached -- nm - con_carne Dec 14, 09:18 1
        
        You're assuming repetition. I'm assuming better regulation in the future to prevent a repeat. -- nm - TWuG Dec 14, 09:30
- Right. Also, credit is still hard to come by (as you suggested earlier). -- nm - con_carne Dec 14, 09:10

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Here's my opinion on the bank bailouts: It had to be done to stabilize the economy. If these "too big to fail" institutions had failed we'd be in

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