The banks going bust would be much, much worse than inflation induced by the bailout cost. The govt. would be on the hook for much larger sums, through FDIC. We’re between the devil and the deep blue sea, but the sea is preferable.
No, it would by much cheaper for the FDIC bailout.
The limits were only up to $100,000 an account. It is now $250,000.
I’d much rather those accounts are covered via the FDIC than hundreds of billions supporting asinine management of stupid firms.
I guess the question is: Will the banks go bust even after given a few bailouts?
This is not a situation that money can fix. This is a mismanagement problem from top to bottom: Wall St./D.C./Main St.