Current Events — HabitableZone

Current Events » in reply to "Pray for Inflation--It's Our Only Hope"

Re: Re: Re: Inflation
TB — (archived)

In a normal market system, banks that did stupid crap would die stupidly. Instead, they are insured by the government, protected by the government, have their loans backed by the government, and when they screw the pooch, the government bails them out. The major flaw with the great "savings and loan" deregulation of some years past was that they loosened the rules but kept all the government safety nets. If you're a sleazy banker, what's not to like? Especially since the regulators and credit agencies have a notable tendency to join all the lucrative fun.

There are worse things than a few bank failures, and putting a penny in the fuse box of market correction is one of them.

But don't worry. No doubt huge rafts of new and improved regulations will be forthcoming, and there will never be any stupid bankers or crashes again. And how many times have we heard that over the past fifty years?

Yeah, and there are no financial fiascos under Democratic administrations. Remember the dot.com bubble? Just to name one?

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