> To mitigate the risks we need a system where instead of bailing out, we let the companies fail. Banks should close. People should lose money. People should be cautious of investing on shaky grounds.
This is absolutely true, in theory. The sickening truth is that all those wounded giants were far too big and too frakked up to let this happen. The stock market crash at the end of the 20s led to (or happened right before) the Great Depression which lasted well over a decade. The situation this time was at least as bad but this time, governments stepped in and exercised their duty to protect their citizens - which unfortunately meant bending the very foundations of capitalism and free market 360 degrees and making sure those institutes do not fail and implode our economy.
But, for the billions used to bailout these corrupt bankers you could have probably just let them fail and pay people the current value of their depots or savings...
A funny detail on the side: when the USA voted on whether to bailout or not, quite a few republicans (so the ones you would typically suspect of cheering for the rich) voted against the bailout just because it was completely against the idea of western capitalism.
which unfortunately meant bending the very foundations of capitalism and free market 360 degrees and making sure those institutes do not fail and implode our economy.
That would be 180 degrees. 360 is a complete circle ;)
This is absolutely true, in theory. The sickening truth is that all those wounded giants were far too big and too frakked up to let this happen. The stock market crash at the end of the 20s led to (or happened right before) the Great Depression which lasted well over a decade. The situation this time was at least as bad but this time, governments stepped in and exercised their duty to protect their citizens - which unfortunately meant bending the very foundations of capitalism and free market 360 degrees and making sure those institutes do not fail and implode our economy.
But, for the billions used to bailout these corrupt bankers you could have probably just let them fail and pay people the current value of their depots or savings...
A funny detail on the side: when the USA voted on whether to bailout or not, quite a few republicans (so the ones you would typically suspect of cheering for the rich) voted against the bailout just because it was completely against the idea of western capitalism.