Quote:
Originally Posted by pasi
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Curious, do you believe the financial system deserved a bail out?
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Most of the bailing out included governments honoring debts. Most of these banks and financial institutions were FDIC insured and eligible for such bailing out, though the fact that it happened on such a large scale was the issue this time.
The obvious answer is to put risk back in the banking world. You can lend money out at lower rates with government backing, but when your loans go to shit (as in this case they were intended to go to shit, so they could throw out as many loans as possible, because in large part the government forced them into risky lending) sometimes you gotta suck it up and take the loss. That is one of the primary purposes of a credit rating: the likelihood of this person fucking you and hurting your business. As it stands it's just an excuse to charge people more on loans of all kinds.