• Striker@lemmy.worldOP
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    1 year ago

    I never got the “economy would of been devastated if the banks weren’t bailed out” argument made during the recession. The economy was in shambles anyway!

    • Neuromancer@lemm.ee
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      1 year ago

      It’s a tough one. Assuming nobody stepped in. Yes there would be devastation but somebody would pick up the assets in a fire sale. So no, there would have been some pain but the system would have been better long term.

      We can’t avoid all pain, otherwise we end up with companies who take stupid risk since they never fail.

      Let them fail and someone else will grow. Otherwise we don’t have a healthy capitalism.

        • Neuromancer@lemm.ee
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          1 year ago

          That would have been a horrible idea. For all intents that what they did with the bailouts. We don’t need the government to own banks.

          Let them fail and others will but them up. We don’t need the tax payers assuming trillions in bad loans.

          • ronalicious@lemmy.world
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            1 year ago

            we don’t have national federally owned banks available to the public, or at least any that I’m aware of.

          • Calavera@lemm.ee
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            1 year ago

            So your idea is just pray for some rich people to buy the assets and not let the bank’s customers without all their money?

            What if this pray for the rich saviors is not answered? Any plan b? Maybe make this buying a law?

            • Neuromancer@lemm.ee
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              1 year ago

              Customers wouldn’t be without money. It’s insured.

              Instead we used tax payer money to prop them up and didn’t solve the problem.

              You have to let things fail.

                • Neuromancer@lemm.ee
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                  1 year ago

                  We did. We put in many worthless regulations that really didn’t solve the problem.

                  I’m a connective republican. Socially more liberal but fiscally conservative.

                  The executives of the banks that needed bailouts should have been jailed as they took risk they shouldn’t have taken. All the banks do it because there are no consequences when they fail. Zero.

                  They need to punished for mishandling assets so poorly.

    • Mr_Blott@feddit.uk
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      1 year ago

      Nobody ever argued that the banks would of been devastated

      They argued that the banks would have been devastated