What would have happen if the bankrupt companies during the financial crisis of 2008 didn't get bailed out? How should we act when another financial crisis emerge ?
>>69800259
American Economy would have collapsed.
The IBs like Lehman: a lot of bad shit, but eventual recovery
AIG and insurance companies: Stone Age
Those insurance companies handled everything and insurances for every single industry
>>69800259
the rich would have been out quite a bit, but still been fine.
mortgages would have been called in, a lot of people out of work
The end of Corvette....
>>69800299
>>69800386
>>69800583
>>69800607
So, it is overall good that they got bailed out?
>>69801727
Yeah because the world economy would have collapsed, literally all that money would have just disappeared. Would have made the recession caused by the Wall Street Crash look like child's play
>>69801727
no, as i am of the opinion that the gubmint shouldn't have a stake in the market. should have let them fall. i mean how much worse could Detroit have gotten than what it is now?
I am crazy and would have rather crashed the economy
Crashes are not always bad, it makes a great time to buy things for cheap
>>69801973
I don't think it would just affect Detroit.
>>69800259
Bad things maybe. But - the current banks would not have the belief that whenever they fuck up they get bailed, (possibly) preventing the next crash.
>>69802130
with what money?
>>69803015
A lot of banks went bankrupt without any bail. The biggest one being Lehman.
>>69800259
Prices would be cheaper
>>69804649
Because?
>>69801727
Yes, it would've made the Great Depression look seem like the rescission in the seventies by comparison.
We're on our way to another recession soon. It better happen before the general election so we can thank Obama for one more thing.
I hope the freemarket fixes it and shit gets straightened out organically rather than another bailout because the dollar will suffer greatly
Bonus question: In the same fear of hyperinflation, what would be the catalyst of the student loan bubble finally popping and what would be the fallout of such an event?
>>69806179
Are you shorting everything?
>>69800259
They never should have of been bailed out. They should of been allowed to fail and the people in charge should of been thrown in prison. All bailing them out achieved was pushing the date they fail further in to the future
>>69806245
forgive me in how I worded my post. It's late for me and I'm not in prime cognitive mode. It is however something I genuinely am curious about.
>>69806179
>what would be the catalyst of the student loan bubble finally popping
Students with worthless degrees in an oversaturated market not being able to get jobs. The banks wouldn't be hurt much since the loans have a high interest rate and can't be gotten rid of through bankruptcy, they can afford to hold on to them, but the schools would eventually fail as banks stop giving out easy loans
>>69807304
a student loan bubble bursting has nothing to do with the value of degrees, that's just optimistic thinking on your part that the market will see a loan value adjustment as an adjustment on college degrees themselves.
Before you can even talk about student loans you need to clarify which type you're talking about. Of America's 1.2 trillion in student load debt, 1 trillion is in federal loans which are explicitly backed by the government and are way more flexible than usual loans (for instance, because you can collect against future income to pay them). This makes the student loan case special, by default a government bailout is essentially baked into the system for over 80% of the market
>>69800259
That image made me realise how much the American flag looks like bacon
