10-26-2015, 08:53 PM
(10-26-2015, 08:13 PM)SunsetBengal Wrote: ...they used our money to help the greedy that deserved to fail.
While it does create incentive problems, the taxpayer made money on the bailouts (excluding GM & Chrysler).
In a normal economy, there would have been private capital to rescue the auto industry. Possibly the banks as well - companies go bankrupt all the time and re-org, but they need capital and liquidity to do that. That didn't exist during the financial crisis.
And people forget the first two dominos to fall WERE allowed to go bankrupt/disappear (Bear and Lehman). Similar happened in '98 with the LTCM and Russian debt crisis - the banks were basically forced to absorb the LTCM balance sheet and eat the losses (which, is fair, since they let allowed the leverage to get out of hand).
