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should we let the financial institutions fail?
Published Sep 24, 2008Views: 706
I've been following this economic bruhaha to the best of my ability: reading various perspectives, watching political pundits and various experts on television and reading individual blogs and websites.
One interesting take I read today essentially says that we should "let the financial institutions fail."
In regards to the huge bailout sum of $700 billion, one particular blogger writes:
"it's your money anyway, and having it used to reward stupidity and recklessness is a surefire way to waste it. There is no averting this economic crisis, it's here to stay and it will be a while before it goes away. Deal with it, and move on, because all of this bailout talk is nothing but a short-term solution to a long-term problem. Just do nothing, and let the market correct itself. Trust me, you will be better off, in the long run, that way!"
What do you think GOLO? Would it be best to do nothing?
Filed under: Politics
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GOLO member since November 20, 2007
September 24, 2008 10:18 a.m.
GOLO member since July 2, 2007
September 24, 2008 10:20 a.m.
GOLO member since September 9, 2008
September 24, 2008 10:20 a.m.
I say let it fall and let people fall flat on their faces, maybe they will learn to live better and NOT spend money on garbage they don't need
GOLO member since December 11, 2007
September 24, 2008 10:20 a.m.
GOLO member since August 22, 2007
September 24, 2008 10:20 a.m.
GOLO member since August 22, 2007
September 24, 2008 10:23 a.m.
GOLO member since July 10, 2007
September 24, 2008 10:24 a.m.
GOLO member since August 14, 2007
September 24, 2008 10:24 a.m.
GOLO member since July 10, 2007
September 24, 2008 10:26 a.m.
That said, I believe there's a disconnect for the average person with regard to this situation. Most of the people I've discussed this with see it as being unrelated to their personal situation. They believe that these banks could be allowed to fail and it would not impact them personally.
This is not really accurate. Were they allowed to fail, they'd take other institutions down with them and drastically tighten the already narrow credit market. This would directly impact businesses that need access to credit in order to expand or even to maintain daily operations. Those businesses would then have to close, cut back, lay people off or a host of other possibilities.
It's not nearly as far from Wall Street to Main Street as most people seem to believe. In that light, there was really no alternative to bailing them out. That said, it still sets a bad precedent.
GOLO member since June 10, 2008
September 24, 2008 10:29 a.m.
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