What that would do to our country?
Also do you know that if the banks do fail that the US government is on the hook for $250k per depositor? In other words the US government will have to pay BIG TIME if they go under.
These banks have millions of Americans life savings in them.
Those of you that say let them fail would you be ok with loosing all of your money? Do you keep your money in a jar? Or do you not have any?
End The Fed!!!
Favorite Answer
"Those of you that say let them fail would you be ok with loosing all of your money?"
.... this statement alone shows how misinformed you are on the topic.
When these banks file BK and liquidate the BAD DEBT, it allows other banks -- who have practiced good lending standards -- to step in and buy them out. So to answer your question, I would rather have a GOOD bank buy out my BAD bank to ensure my money is protected and is kept in good hands.
You should educate yourself by learning about the Austrian Theory of the Trade Cycle http://mises.org/tradcycl/austcycl.asp
..maybe THEN you will have a better idea of how and why these things NEED to happen.
I think you are too focused on the symptoms and not the causes.
Bailing out banks is a TERRIBLE idea. It inflates the currency, encourages the continuance of poor lending practices by providing a safety cushion, and the worst part is it will cost ALL of us taxpayers rendering the entire idea unconstitutional.
BTW, I'm not trying to be offensive, just being real with you. Have a nice day.
Martin L
I'll answer the question by saying I generally agree with End the Fed. I have had my bank bought out about five times in the last 20 years. I would rather have it bought out again by a worthier bank than taken over by the Feds...for all the reasons outlined on the von Mises site.
That said, I would like to respond to catharsis' comment: "Money in the bank is money that the Fed can get it's hands on...Money in my pocket is out of reach for the Fed."
Catharsis, I would rethink that statement. The Fed can shrink the value of your account in an instant, just by cranking up the printing press. The lower the interest, the more money created, the less buying power each dollar has. (Dollars are no longer backed by anything but the government's blessing.) So money in your credit union may be safer from takeover, but it is not safe from the ravages of Fed monetary policy.
catharsis
Money in the bank is money that the Fed can get it's hands on.
Money in my pocket is out of reach for the Fed.
Besides, I use a CREDIT UNION, not a bank. The difference being that a credit union is a NOT FOR PROFIT organization, but a bank is all about making a profit.
So, big business making a profit is pure evil and must be abolished, but the banks need to be saved? No, credit unions need to be given your open minded consideration.
I wish that we could use italics here, rather than bold font to stress key points. I honestly am not angry or trying to yell at anyone.
lirette
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Happy Days
Hey, it's not my fault all your dang socialist is failing, it's not my fault the gov't insures banks. Let these criminals go under. Why should I have to pay more for goods because these people failed?
I guarantee you right now, you will not collect an unapportioned tax from me.