Replies to post #96325 on Tornado Alley (PROG)

[SoxFan]

What do you think would happen if they collapsed?

[wbmw]

banking reform is the incorrect answer....the companies involved were supposed to collapse....not be bailed out....

In most cases, this would be true. What the experts determined, however, was that these "too big to fail" institutions would cause such a severe financial ripple that it would have caused a much more severe depression.

Think about people's pensions, their retirement funds, their investment portfolios, and many other things that these same banks held as assets, but which would have been compromised if bankruptcy was the only solution.

That's what the experts were saying - and not just the ones with an agenda. I'm not an expert, and neither are you, so we can have separate opinions on whether a real financial meltdown would have been a consequence, but for myself - I would not have wanted to take my chances.

If there was a danger of a meltdown, then clearly the bailouts prevented it.

By the way - banking reform means getting rid of "too big to fail"!

they're still in business...compliments of the US government !!!

And compared to the alternative, we should all be greatful to the govt for their quick actions.