Quote:
Originally Posted by The_Dunedan
Utterly squandered. A total waste, even if the Gov't makes something it can call a profit.
Why?
Because TARP in essence told large corporate banks that it didn't matter what they did, or what stupid decisions they made, or how they screwed their customers and shareholders: if they were "too big to fail," which conveniently never -did- get defined, they can do whatever they like and Uncle Sugar will just shake down the taxpayers for the money to bail them out. Just like every other form of Mercantilist/Corporatist welfare, it insulates bad actors from the consequences of their bad acts.
As a result of this, we -will- see this kind of chicanery again, and it -will- be worse next time.
|
Would have preferred the US to go into a great depression for the next 20 years and possibly become a 3rd world country?
Also I disagree with your assertion that now banks will see this as an invitation to keep doing this. This is analogous to saying someone who gets in an accident but is unharmed and their insurance picks up the bill will try to get in accidents again because they know their insurance will cover it.....
Also don't forget that many of the banks didn't get bailed out and guarantee that this is a fear among these banks that the next time they won't be bailed out.
---------- Post added at 06:01 PM ---------- Previous post was at 05:10 PM ----------
Finally here is one more question for you DuneDan. If your neighbors house (which ends only a few feet from your house) were on fire because they were playing with matches, would you tell the fire department to let it burn because it is their own fault, despite the fact that it is likely that the fire would spread to your own house?