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
There was a day short term lending for large corporations froze. That’s the shit that makes your paycheck work. Imagine your boss said, “We can’t write checks anymore because the most basic, safe banks are no longer sure it will work. Our business is actually totally soild, but I’m going to need you to work without a paycheck for a few weeks while we build a vault, hire some security guards, and tell our customers they need to start paying us with cash (so we can give it directly to you).”
You then go to the grocery store. You do a double take, why is there a long line at the ATM? Why are there multiple security guards guarding the ATM? You go to buy beans and, WTF? Cash only? Oh the grocery store is building a vault for cash where the ice cream used to be? You go outside, no line at the ATM? It’s out of cash? You mom calls, “Have you gone to the bank yet? They’re all running out of cash!”
Panic sets in. No paycheck. No cash. You have no way of buying food and no idea when you will be able to.
Hence, every country in the world did some version of We the Government are good for it, here’s some electronic money so that paycheck works.
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