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It doesn't work that way with banks. I'm very supportive of lassiez-faire economics in general, but typical logic simply cannot be applied to failing banks. When banks start to fail, there is a huge contagion effect.
You're suffering from some sort of cognitive dissonance when it comes to capitalism and banks. You can't support a free market and support bankster bailout socialism at the same time. The only reason "too big to fail" banks exist is because of corrupt corny capitalism system creates these monsters. These banksters gambled on a morally bankrupt system propped up by a bubble fueled by an economic cycle that neither they nor their bedfellows in Congress and the White House understood in the least. Then when the bubble popped instead of potential criminal investigations and allowing our corrupt system to collapse on itself we bailed them out and gave them a golden parachute.
You cannot claim to be supportive of "lassiez-faire" and support TARP. Capitalism and free markets means that poor behavior and malinvestment get punished. Bailouts and TARP created a moral hazard. Why not be as reckless and risky as you can be when you know that no matter what Uncle Sam will foot your bill if you go bust?
You cannot claim to be supportive of "lassiez-faire" and support TARP. Capitalism and free markets means that poor behavior and malinvestment get punished. Bailouts and TARP created a moral hazard. Why not be as reckless and risky as you can be when you know that no matter what Uncle Sam will foot your bill if you go bust?
You're right - which is why I am philosophically opposed. This is also why I said there are long term consequences for bailing out the banks - more reckless and risky behavior. That being said, the short term consequences could have been severe enough that I do feel the bailouts were worth it. I'm not exactly sure what the solution is to be honest. Maybe mandating that any bailouts have to be paid back at 3x what is loaned or something like that.
A true free market where banks will face the consequences if they make bad decisions IS the most efficient system. If they know there will be no bailouts, the chances of them making such bad decisions will be far lower. That being said, when big bank after big bank starts failing - no matter why they are - something has to be done.
So anyway, the Fed was supposed to take over failed banks. Freeze everything including raises and bonuses. This was the law. It was completely ignored and then we were lied to when people complained about the bonuses that were quickly paid out. "There is nothing we can do about that". Well, you could have followed the laws that were in place.
And in this case that likely would not have been sufficient.
Not sure what your pointless point is, but even most people who were 100% against TARP, myself included, have now agreed it was probably necessary.
Just more hot air and desperation.
Quote:
Originally Posted by NorthGAbound12
You're suffering from some sort of cognitive dissonance when it comes to capitalism and banks. You can't support a free market and support bankster bailout socialism at the same time. The only reason "too big to fail" banks exist is because of corrupt corny capitalism system creates these monsters. These banksters gambled on a morally bankrupt system propped up by a bubble fueled by an economic cycle that neither they nor their bedfellows in Congress and the White House understood in the least. Then when the bubble popped instead of potential criminal investigations and allowing our corrupt system to collapse on itself we bailed them out and gave them a golden parachute.
You cannot claim to be supportive of "lassiez-faire" and support TARP. Capitalism and free markets means that poor behavior and malinvestment get punished. Bailouts and TARP created a moral hazard. Why not be as reckless and risky as you can be when you know that no matter what Uncle Sam will foot your bill if you go bust?
I love it when lefttards learn new words.
lol
Quote:
Originally Posted by afoigrokerkok
The Daily Kos is such a non-biased site, isn't it?
Reality - revenue did increase following the Bush tax cuts once the economy got back on track in the mid 2000's
The Iraq and Afghanistan wars have cost about $1 trillion total in over 10 years
The Daily Kos...the left's blog machine. Worthless to the core.
its no longer about which party is the drunk sailor. the spending binges need to stop. we dont need a president we need 12 step for debtors anon and counseling.
So is Paul Ryan a right-wing extremist or not? Make up your mind on which false narrative you want to push and stick with it.
By the way, most of the GOP supported TARP. I supported TARP, so I'm definitely not turned off by this. In either case, Obama and Biden both supported it so it's not like having this on his record will send people over to the Obama team
I apologize. I deleted my post. You quoted a poster who responded to me and I thought it was more likely that you were calling me a "leftard" than the other poster. (Neither of us are.)
TARP and the RECOVERY ACT were necessary at the times. What is significant is that Ryan was for the first while Bush was in power, but against the second when Obama was in power. So one can conclude that he wasn't voting according to sound economic principle. He was voting along with his tribe.
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