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Random_Guy_47 t1_jdxd5pz wrote

They should just make the deposits whole and let the bank fail.

No more bailouts.

For years the banks have happily made risky investments safe in the knowledge that they'll get bailed out if they fuck up. They won't stop unless they actually face the consequences and there are no consequences because they just get bailed out by the taxpayer every fucking time.

Let one fail and the others will sort their risk management out very fucking quickly.

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Few-Degree3968 t1_jdxxnu7 wrote

even if we let the bank fail. The c suite will still get paid at least until the collapse.

Preferred Shareholders still get paid until the bank collapses and majority still get paid back afterward.

Bank goes under. Another pops up in its place. Probably under the same foolhardy management scheme that failed the first time around with identical overpaid assholes running it into the ground.

God save us all.

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Temperature_Foreign OP t1_jdxgkx3 wrote

the problem is that letting a bank fail will lead to everyone rushing to get their money out of banks

this will be a big bank run and cause every bank to fail

And this will cause a huge economic collapse

But hey, maybe pulling the band aid off quickly and suffering a ton in the short term is better than a slow burn

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Random_Guy_47 t1_jdxhb8x wrote

That's why I said make the deposits whole. No need to rush to get your money, your money is bailed out.

It's all the rest that is left to fail.

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mostlyeve t1_jdxppj2 wrote

What I take away from your words is that the economy is built on a foundation of sand. A house of cards if you will.

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TwoBulletSuicide t1_jdzyk4v wrote

Fuck the greedy banksters. Let them jump. They are robbing billions of citizens of their wealth worldwide.

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painefultruth76 t1_jdxuxq9 wrote

That's effectively what Hoover did after 29. It got Roosevelt elected and the New Deal....which was a mixed bag....my grandfather told me stories/experiences that frame it more socialism from the perspective of a teenager....and the scary thing is...the data that was coming out, wasn't not showing the WPA and New Deal actually fixing the economy...WW2 did that, and the US subsidizing/capitalizing Western Europe, Japan and Korea being rebuilt...

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That-Dragonfruit-567 t1_jdyq85k wrote

In a perfect world, the depositors with like 50 million held at one bank would at least take a haircut as well. The risk management is pathetic . .

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