This was extortion. Goldman Sachs isn’t even a bank and they were bailed out, along with GE Capital. Replacing the banks with new ones, with new owners would have been the best course.
When failure is caused by the government, i.e. make loans to the unqualified.
We’ve got a government that’s too big to fail but it is certainly going to if we stay the path.
This is why we need to decentralize government. If one of 50 states fail, the nation can rebound. If all the power is in the federal government and it fails, we’re in deep @#$^.
We need to remove the power from a few large financial institutions that are too big to fail.
So I agree with the premise but I am wondering, TARP was something like 9 point something billion (let’s round to a trillion since we’re among friends). I wonder what letting the banks fail would’ve cost the tax payers if the FDIC had to pony up the money to depositors that would’ve lost their money? Then what would have been the costs to the market and housing had the banks not been bailed out? Wondering if anyone saw any articles about the costs had we not gone down that path? AGAIN, just wondering and the Cruzster is at the top of my list for pres so don’t climb all over me. :)
The point is to not allow the banks to get too big in the first place.
The moral hazard is now eating away at the very foundations of capitalism.
When you have a low-info electorate that sees taxpayer money being used to bail out big banks, and to create one soley to finance business for Boeing and GE, it becomes very, very hard to explain to them why taxpayer money should not be used to give them “free” health care or pay off their student loans.
That Kasich or Bush did not mention FDIC was very telling.
First off they don’t let the banks just fail. They get another bank/banks to take over the deposits which John Kasich knows very well. Then they sell off the assets and loan portfolio to other investors.
I saw a point to the AIG bailout — their insurance division was worth keeping running because it was the only company that wrote certain types of insurance (including issuing some wrongly-vilified types of derivatives) — though it should have been handled very differently, basically a bankruptchy receivership with someone outside put in control of keeping the operations up and running, divestment of all non-core functions (esp. the money-losing hedge fund division), and infusion of only enough cash to keep the operations going. No money that could be siphoned off by the managers who led the company to ruin should have been involved — in particular no bonuses for anyone — and a lot of AIG top managers who hung on an profited from the bailout should have been sacked.
After that, they all should have been let fail, big banks, GM, the lot.
Cavuto, like cnbc stooge Maria are water carriers for the big banking RINO establishment. I remember Cavuto denying there was a housing bubble in 2007.