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re: Would We Have Been Better Off If The Gov't Let The Banks Bottom Out, Not Bailing Em Out?
Posted on 5/16/17 at 12:40 am to TigerFanInSouthland
Posted on 5/16/17 at 12:40 am to TigerFanInSouthland
quote:
quote:
Iceland let the banks fail, prosecuted the bankers, and bailed out the depositors. Their unemployment rate peaked at 6.3%.
Could this absolutely not have worked here? I mean, if the government is gonna bail somebody out, shouldn't it be the people and not the companies? Shouldn't the government guarantee that we get our money back instead of the banks?
That 6.3% number is wrong. It peaked at nearly 8% and only got back to that around 2012. Iceland was a shite show from 2008 to 2010.
It's also a country the size of Lafayette, Louisiana metro area, not the single largest economy in the history of the world, the global financial center, and tightly tied in with the rest of the developed world. It's comparing apples with elephants.
This post was edited on 5/16/17 at 12:42 am
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Posted on 5/16/17 at 12:42 am to kingbob
My thing is, look what our economy did after the Depression. Yes, it lasted 10 years and was helped out immensely by WWII. But once it ended, our economy skyrocketed, pushing us to greater heights in a shorter time than any country has ever seen. That boom lasted for an incredibly long time.
Posted on 5/16/17 at 12:47 am to TigerFanInSouthland
quote:
My thing is, look what our economy did after the Depression. Yes, it lasted 10 years and was helped out immensely by WWII. But once it ended, our economy skyrocketed, pushing us to greater heights in a shorter time than any country has ever seen. That boom lasted for an incredibly long time.
"Helped out immensely by WWII"
Yes, having the entire rest of the world's industry completely demolished and sent back into the Stone Age and the U.S. becoming the logistical and financial arsenal of the Allies played just a small part in that, dude. Think this through a little more.
This post was edited on 5/16/17 at 12:56 am
Posted on 5/16/17 at 4:43 am to TigerFanInSouthland
Our financial system is the grease that greases the skids of the economy. It is the life blood. The economy is built on business and business built on confidence. Confidence in the financial system was in jeopardy. I won't Monday morning quarterback the decisions made when all hell was breaking loose. Things could have been much worse.
Posted on 5/16/17 at 5:00 am to TigerFanInSouthland
We would be better off in almost every single instance had the government not stepped in to mess with free commerce.
Posted on 5/16/17 at 6:10 am to TigerFanInSouthland
quote:A cocksucker in every sense of the word.
Barney Frank
Posted on 5/16/17 at 6:34 am to TigerFanInSouthland
The most amazing thing to me is that Henry Paulson made ~$7 billion in 2007 and ~$9 billion in 2009 off of this mess.
I'd think that would cause riots. Nope, nobody GAF.
I'd think that would cause riots. Nope, nobody GAF.
Posted on 5/16/17 at 6:53 am to Gaston
If we did no bailouts the gamblers might have renounced satan.
Posted on 5/16/17 at 6:58 am to Bestbank Tiger
quote:
Iceland let the banks fail, prosecuted the bankers, and bailed out the depositors.
Iceland prosecuted bankers who actually broke the law. So did the US.
As usual, Russian is correct b/c he understands how everything works. Most of you are simply repeating something you saw on the internet that "makes sense" to someone who doesn't really have a clue.
Posted on 5/16/17 at 7:32 am to TigerFanInSouthland
quote:
How painful we talking here? Like Greece painful?
Not Greece bad, but it would have likely been another depression. I think the rebound would have been faster and stronger, but the initial gut-punch of the market collapse for 2-3 years would have been an extremely difficult time.
My biggest issue with the bailout is that we never learn from it; banks are already, 10 years later, heavily invested in the subprime market again (thanks to government regulations, again) and things look eerily similar to the early 2000's, minus the incredible job market. They know they can never truly fail thanks to government interference, so they will do what makes them the most $$$ in the short term, then take massive buyouts when the bubble bursts. It's a win-win for them and it's the American taxpayer/consumer who gets fricked. Most of them are either too lazy or too stupid to care, though.
This post was edited on 5/16/17 at 7:34 am
Posted on 5/16/17 at 7:35 am to crispyUGA
I don't know about that. Banks are being more stingy with their money right now than I've seen in 10 years. Businesses are hurting right now because banks won't lend money to companies to buy equipment to grow their businesses. 5-10 years ago banks were giving money away, not anymore.
Posted on 5/16/17 at 7:38 am to TigerFanInSouthland
Yes. Both the banks and auto industry.
Posted on 5/16/17 at 7:39 am to Blue Velvet
If I remember correctly Warren Buffet was also give some sweatheart deal with Goldman Sachs.
Posted on 5/16/17 at 7:40 am to LucasP
quote:
So that makes you like twenty five now? Your too young to have an opinion that matters, sport.
He can vote. Why would you want our 18-25 year old voters to stay ignorant of how incompetent our government is? Explain this to the chap, and he has a better understanding of why votes have consequences.
Posted on 5/16/17 at 7:41 am to tgrbaitn08
Not when it comes to personal loans, and not my business loans. Granted, we have a very good track record and an even better relationship with our banker. But I have several friends who have been offered great mortgage rates with very little $$$ down from your larger banks and some of them have pretty shitty credit. Not saying they're as crazy as they were when it all came tumbling down, but I find it concerning that we're seeing some similar practices that lead to collapse already.
Posted on 5/16/17 at 7:41 am to TigerFanInSouthland
The govt MADE MONEY on the bank bailout. Each bank that they lended money to paid it back on time in full. I typically wouldn't agree with measures like this but it made perfect sense and saved our economy.
Posted on 5/16/17 at 7:42 am to AbuTheMonkey
quote:
but markets (and consumers) are not always rational.
Yet you think that the government is always out for the good of the people?
Posted on 5/16/17 at 7:42 am to TigerFanInSouthland
quote:
My biggest thing with all this is, isn't our economy supposed to be founded on free market capitalism? So some businesses fail and some thrive. I know that there is some truth and some falseness in that statement, most likely, but what the government did seems to me to have gone pure socialist on the problem.
Yes, but our financial system is not. And our we don't have monetary neutrality or anything close to it. You can't conflate economic markets with our monetary system.
Posted on 5/16/17 at 7:43 am to crispyUGA
quote:
Most of them are either too lazy or too stupid to care, though.
Negative. They know exactly what they're doing and the possible outcomes. If you're naive enough to believe that the smartest economic minds work in the public sector for the greater good, well, I'm sorry.
Posted on 5/16/17 at 7:45 am to ThatMakesSense
quote:
Negative. They know exactly what they're doing and the possible outcomes. If you're naive enough to believe that the smartest economic minds work in the public sector for the greater good, well, I'm sorry.
I'm talking about the American consumer. If you think our population isn't lazy and stupid as shite, well, I'm sorry.
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