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
The whole economic system was in an extremely fragile state. The companies deserved to fail, but they’re too big in the sense that it will have a huge effect on individual non-rich people. It’s easier to stabilize what mess we had than to try to fix the mess while preventing other disasters. Literally everything in the economy was wrapped up in this handful of banks and companies in some way.
It’s kind of like the stimulus checks during COVID. They are a blunt instrument that caused a lot of bad things. But it was also much easier to manage than hundreds of individual programs targeting actual specific needs – it would have never gotten accomplished before it was too late to matter.
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