Was the American capitalist system worth saving ?

[kentuck]

What would have happened if we had not bailed out the big banks? If the politicians had come to the conclusion that they were not "too big to fail" and had left them to their own devices, would be better or worse off today?

Now, since the banks have all the money and seem to be in no hurry to loan any of it out, their stocks are soaring. However, the average American's lifestyle continues to decline. Especially those 3 million that have lost their jobs in the last year or so.

Will history show that the banks and our entire capitalist system were near death and that our tax dollars brought them back to life? Will that turn out to be an historic and monstrous mistake? Would not the people have had a stronger hand than the banks if we had let them go under? What type of sacrifices would they have made if they had not received the taxpayer dollars?

[Taverner]

1. What would you replace it with and how?

I'm a Socialist at heart, but I know if the US were to ever transition to Socialism it would be a good 20 years of pain, food shortages would be common and civil unrest would probably bring the new system down.

[arcadian]

3. It doesn't have to be that way.

[Taverner]

10. Its the nature of any change of that magnitude

Whether its going from Communism to Capitalism (USSR->Russia), going from Oligarchy to Communism (most communist revolutions) or even if its a matter of just going socialist - there will be an adjustment time. And during that time, food will not make it to its intended recipients, employees will walk out - there is no way to prevent them, just to lessen them.

The UK tried going full-board socialist in the early 70's. It didn't work, and Thatcherism soon replaced it.

Changes need to be incremental, but they need to be progressive changes.

[grahamhgreen]

6. Small community banks

[closeupready]

2. Is that what we did, though?

Seems to me we simply bailed out financial parasites from the consequences of their destructive choices due to the fact that the movers within those entities are well-connected in DC. Capitalism, on the other hand, would have stated (if it were a person), 'No bail out. You live or die with the choices you made.'

[Deja Q]

4. Until all the jobs are offshored, yes.

/baseless cynicism

[madrchsod]

5. unregulated capitalism

that is what has caused the problems we are facing today.

[Hydra]

7. They robbed us

That's all. They didn't need all of that money for anything...they just wanted us to cover their bad gambling debts. Had we said "No" and they moved to some other country, smaller banks could have loaned to us with the low interest money the Fed is offering right now.

And they'll do it again in the future when they start the next bubble. Healthcare, maybe?

[blindpig]

8. No, it was not.

But it really couldn't happen any other way, the capitalists own everything, including the politicians of either party.

[stray cat]

9. No - I think no system and no economy and no jobs is much better

or do you actually have a real idea that would be effective?

[kentuck]

11. Do you believe that is what would have happened?

If we had not given all that money to CitiGroup, Goldman Sachs, Bof A, and the other high rollers?