So the alternative would have been to let these institutions go under, throwing the system into chaos, along with many smaller businesses and borrowers?
Do we disdain the positive aspects, including the profit to the Treasury?
The banking system did need some help in the fall of 2008, which it received. And yes, we need a viable banking system to function as a country.
Please note though that the 2 institutions cited in your linked article are not even banks.
The latest estimates are that at best, we will get back $30 Billion from GM - that is not what is considered making a "profit" in the real world.
If we had let GM go through a normal bankruptcy like it should have, we not only would still have a domestic automotive industry including a reorganized GM - plus we would have saved at least $20 Billion if not more.
GM would not have shut it's doors - to say so is naive as GM would have simply been reorganized by it's creditors, instead of by the White House.
Up until the 3rd week of January in 2009, it was Progressives/Democratics doing most of the bashing of govt bailouts.
ReplyDelete$50 Billion given to GM and now they are "paying" back $1 Billion, which would not even be consider covering the interest payment in the real world.
And add in the fact TARP money going to The Hartford in the first place was a scam, as they should never have received any of the TARP funds.
So the alternative would have been to let these institutions go under, throwing the system into chaos, along with many smaller businesses and borrowers?
ReplyDeleteDo we disdain the positive aspects, including the profit to the Treasury?
The banking system did need some help in the fall of 2008, which it received. And yes, we need a viable banking system to function as a country.
ReplyDeletePlease note though that the 2 institutions cited in your linked article are not even banks.
The latest estimates are that at best, we will get back $30 Billion from GM - that is not what is considered making a "profit" in the real world.
If we had let GM go through a normal bankruptcy like it should have, we not only would still have a domestic automotive industry including a reorganized GM - plus we would have saved at least $20 Billion if not more.
GM would not have shut it's doors - to say so is naive as GM would have simply been reorganized by it's creditors, instead of by the White House.