No bank is too big to fail. There are always solvent entities that might not be able to buy Chase but could buy one fourth of Chase. A controlled break up of the failing big guys would have been much better than the bail out. Do you think somebody is just going to buy Fannie or Freddie? No eventually they will be divied up into about 4 or 5 sections and sold off that way in chunks.
Next time there won’t be a bail out. There will be a bail in. You will wake up on Monday and your bank accounts will be about 20% lighter. But hey the bank will still be in business.
And after the torture they've put BofA through, for the sins of Countrywide, no bank is ever going to buy a problem to help out during the next crisis. Not gonna happen.
Next time there won’t be a bail out. There will be a bail in. You will wake up on Monday and your bank accounts will be about 20% lighter.
Absent the bailout (short term loans, really), this would have happened in 2008.