2008 was a systemic problem.
Allowing large banks to fail in such an environment can lead to much bigger problems.
Some around here seem to want another Great Depression but I don’t think it’s the way to go. It didn’t work out for Hoover or the rest of the GOP. We ended up with a bunch of socialist programs from the Democrats.
After the 2008 bailout we ended up with a bunch of socialist programs from the Democrats.
It’s not that, we don’t want intentional failures cascading, but that’s what the federal Reserve is for..It’s not there to create jobs.
One of the primary reasons, perhaps the only reason of substance that this economy never rebounded as we have after most every major recession except for one in 1929, was that the Government intervened far too much and for too long at far too high of a price.
We watched as this occurred in Japan with the same results, and we have our own history of 1929, a depression/recession that lasted up until WWII.
The markets, including the banking system which is a integral part of it, has to fail in order to clear and recover. If we don’t let it, and keep trying to hold itup as they have done now for 10 years of zero interests rates, then you have placed a body cast on the economic engines.
The people paying for this crap, are the savers whose assets have depleted because they cannot earn interest on their money, and the young who are the growth engines new blood. They are working part time jobs with college degrees and totally wasting precious time. They may never recover to help contribute to a renewed growth phase..
Government once again has tried to help for political reasons, and totally screwed the economy and a entire generation of kids.
That’s what we are talking about..
It's because history has repeated. The Government did too much intervention for too long of a time in 29.
When it happened in 2008, they repeated it but thought they were doing it better. They doubled, tripled, quadrupled down with the same results as some expected.
You have to allow the failures. You can prop up the ones that can recover quickly, but banks like Citi should have failed. And yes, people loose their investments and their livelihoods, but they can recover. But only if the economy bounces back.
That did not happen, and contrary to govt stats, it still has not happened.