Reply #5: The article states this: [View All]

[truedelphi]

What else could they have done? Very simply, we could have allowed failing firms to fail, wiped out shareholders, devastated bondholders, seized depositor assets, perhaps while increasing liquidity to make sure healthy financial institutions had enough cash on hand to deal with any panic.


Why couldn't we just do what our nation did during the eighties? Once we realized we needed to do something about the S & L crisis? Also the legislation for that crisis is still on the books. In following this legislation. We simply would have allowed the Bailouts to be offered not to the scumbag top banks that caused the problem, but to smaller regional savings and loans, and each state would appoint one bank for each of the designated regions. Lending could have begun immediately and loans to small businesses would now be being made!

ONE DOWNSIDE: Of course doing the BailOuts this way would not have helped Goldman Sachs nearly as much!!

Instead we are hearing about how difficult it is to get a loan - even with the best credit rating that exists. Well of course it is difficult - the money has been hoarded by the Big Players, and they are not about to ruin it for themselves by dispersing it down to the Common Person.

Even though it is the Common Person's economy that has been ruined by the excessive amounts of these Bailouts. With more ruin to follow in the wake of Hyper Inflation.