Your Economy (No Politics)

[cliffvb]

I think our economy would have suffered much more pain if Bernanke had not taken those actions to bail out the banks. Our entire economy is based on confidence in our banking system. Lose confidence in that and everyone with over 250K in deposits would have been lined up to withdraw their money from the banks. That includes not just more wealthy individuals but corporations with millions on deposit. The banks would have started falling like dominoes. As it was, the FDIC took over 140 insolvent banks in 2009. Hundreds more were in danger of insolvency. When the FDIC took over the banks, they liquidated the assets. I have a relative who had a business development loan at a bank the FDIC took over. They called it early even though it had years before it was due. This forced him into bankruptcy. I'm sure that scenario was repeated many times over.

I think Bernanke saved us from a much worse scenario with his bail out the banks arm twisting of congress.