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re: WHy the bailout???

Posted on 9/19/08 at 5:51 pm to 33LSU33
Posted by Parliament
Member since Dec 2007
5787 posts
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Posted on 9/19/08 at 5:51 pm to 33LSU33
The banks are 'too big to fail,' because if they did, it would cause a cascade effect that would wreck every corner of the economy.

Why are they bailing out AIG and the MMA's? I have no idea.
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Posted by LSUtoOmaha
Nashville
Member since Apr 2004
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Posted on 9/19/08 at 6:17 pm to Parliament
AIG: Because it's an insurer and would also have a cascade effect.

MMA's: Because if these fail then there will be an extreme panic and everyone will try to take out their money.
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