I would like to know who is responsible for this fustercluck, who is going to jail and how we will be paid back.
What I am certain of is that this bailout will be a better gamble than the 60 billion to Africa for dictator walking around money, er. I mean fighting aids.
Having a depression means that the market is correcting itself. Yes it would suck. There would be deflation (which in itself isn’t a bad thing) which would lead to a period of unemployment.
The reason the Great Depression lasted so long was because the government got involved in the market and tried to “help” people thus preventing the market from correcting itself as soon as possible. What should have lasted a year lasted 15. If the government were to take its paws off the economy and let the these institutions fail, yes it would be painful, but it would correct and we would no longer be living on a bubble of credit and loose money.
This is of course assuming that the government stops manipulating interest rates, cuts taxes and spending, doesn’t set price controls, and gets rid of minimum wage laws.
We have been living far beyond our means encouraging consumption over savings with unnaturally low interest rates and eventually this will come to an end. Whether its on our terms (by letting these institutions fail) or by the laws of the market being pushed too far when we continue with our socialist policies.
One way or another we’re going to get some kind of recession/depression and the longer we wait the worse it’s going to be.