Monday, February 9, 2009

Banks can take the bailout money and I’ll take the Payday Loan

Bailing out banks

Bailing out banks

Not everyone thinks the bailouts are a good idea

I'm taking a Payday Loan and I will stop complaining. But many people are complaining about the bank bailouts and it's easy to understand why. In a capitalist society, the strong survive and the weak collapse. A bailout, in many respects, is a reward for failure. "Your bank didn't quite make it? Never mind, here's five hundred million dollars to help you."

Are bailouts necessary?

In the situation we are finding ourselves, that bailout is running in circles around the bottom of the barrel, and we don't really have a choice. We have to do whatever will fix things and ensure the country’s future prosperity. And right now that means bailing out the banks and stimulating the economy.

U.S. - the home of Capitalism

Capitalism generally works well but it has its blind spots. It makes the bank executives take risks in order to build bonuses. They don’t care about systemic risks and often they don't care about their own shareholders. So, regulation is necessary to reduce risk.

Unfortunately, our regulators dislike regulation, and last year the resulting crisis drove the banking system to the brink of collapse.

Talking of collapse…

Of the big five U.S. investment banks, only Morgan Stanley and Goldman Sachs are still standing, while Lehman, Bear Stearns and Merrill Lynch have all been buried. ... click here to read the rest of the article titled "Banks can take the bailout money and I'll take the Payday Loan"

No comments:

Post a Comment