Didn’t some of these companies cause the crash? Or at least help it. Feels kind of unfair that they get off scot-free.
What would have happened if the government didn’t bail them out? Would we ever recover?
In: Economics
Because those companies were deemed “too big to fail.” A rather misleading turn of phrase, because it doesn’t imply that a company is too big and successful to fail.
It actually implies that a company has grown so big that it is, more or less, integrated into our everyday lives. Therefore, the disappearance of said entity, would theoretically cause major disruptions with how we, as a society, behave and operate.
I don’t like the idea of a multi-billion dollar entity getting a bailout loan from the government. But you want to know what I dislike, even more? The idea of a society that has to experience the fallout from, let’s say, an international banking failure.
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