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
You live on a large street of townhouses. The people in the middle house play around with fireworks and gasoline and set their house on fire.
Do you let the whole street burn down just to teach them a lesson? Or do you put the fire out and repair the damage?
The Troubled Asset Relief Program (TARP) was a firewall. And it was not free money. In the end the taxpayers made $15.3 billion in interest.
Yes, very few people were held responsible. But that is the failure, not stopping the fire. In fact other countries at the time were criticizing the US for not bailing out the economy further than they did. They didn’t think it would be enough.
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