03-05-2016, 07:02 PM
(03-04-2016, 07:31 PM)Yojimbo Wrote: My opinion on letting them fail is basically it would have hopefully had two effects. One, show the industry that practicing such risky behavior has consequences and two, would have lead to less concentration of money in so few banks.
But if you let Lehman Brothers fail then millions of innocent people lose their retirement savings. Industrial investors all over the world would have be holding worthless paper that was supposed to be backed by credit defualt swaps written by Lehman Brothers.
You let all the lenders that wrote credit default swaps fail without a bailout then it doesn't just hurt bankers. It hurts EVERYONE. We didn't bail out these financial institutions to save the institutions. We saved the institutions to save millions of innocent investors around the world.
