this post was submitted on 05 Jan 2024
1098 points (96.0% liked)

memes

10162 readers
3557 users here now

Community rules

1. Be civilNo trolling, bigotry or other insulting / annoying behaviour

2. No politicsThis is non-politics community. For political memes please go to [email protected]

3. No recent repostsCheck for reposts when posting a meme, you can only repost after 1 month

4. No botsNo bots without the express approval of the mods or the admins

5. No Spam/AdsNo advertisements or spam. This is an instance rule and the only way to live.

Sister communities

founded 1 year ago
MODERATORS
 
you are viewing a single comment's thread
view the rest of the comments
[–] afraid_of_zombies 0 points 10 months ago

Bailouts are worse. Whatever you subsidize you get more of, so if you subsidize financial mismanagement you get more of the same. It is called a preverse incentive a term I am sure your economics 101 class didn't mention for a reason. The same reason why preachers don't mention the stuff about Jesus saying to pay taxes.

It is better to let the banks fall, FDIC the accounts, and make sure the bankruptcy courts make recommendations to the AG office for criminal prosecution.

Besides which there was really no danger of AIG or Goldman folding. They lied about their financial situation. By the time it crashes they had moved all of their toxic assets into pension funds.