*sigh* the rich always get bailed out, it sickens me.
Too big to fail is BS
anyone stupid enough to have more than the insured $250,000 in that bank deserves to lose it, and since I know there is like a nearly 99% chance they are all liberal techies, I have zero sympathy for them.
If I were to guess, I’d say FR is filled with people who are government employees (or retired government employees) and don’t have a clue about how business works.
As usual, they win we lose. Liberals run the system.
I hate the lie that taxpayers won’t bear the burden. I’m sure they mean the fed will print money, which is an indirect tax.
That said, I’m not sure I would classify this as the rich getting bailed out. This is a bank that dealt with a lot businesses. So, there is a LOT of payroll going through those accounts.
I would call this protecting a bunch of small-medium businesses from disappearing overnight, along with the jobs.
A little math. Suppose your company has a $10m monthly payroll. If they want the monthly float insured, they have to spread that $10m over 40 banks. That isn’t logistically possible. Now add in that you can’t have a balance of only one month’s payroll. Your reserves have to live somewhere.
Now imagine that there is a bank run across even the too big to fail banks because of fear. They are all leveraged based on the deposits - the ratio is (or was) regulated. They all become insolvent. At that point, just about every US company has no funds to pay their employees.
It’s extreme. But that, I think, is the slippery slope they are trying to avoid.
they need to stop fibbing about who is footing the bill though
anyone stupid enough to have more than the insured $250,000 in that bank deserves to lose it, and since I know there is like a nearly 99% chance they are all liberal techies, I have zero sympathy for them.
Plenty of mid-sized companies have payroll runs greater than 250K. Do they deserve to lose their deposits that were intended for people's paychecks?