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- Jun 23, 2008
cguy610 wrote:
Essential1 wrote:
so what's the conservative take on how we should have handled GM, is it let them fail like we should have the banks? Loser strategy if so.
Conservatives think that it would have been a better idea to let GM, Chrysler, Bank of America, AIG, Citigroup, Wachovia, Countrywide, Bear Stearns, Fannie Mae and Freddie Mac all collapse at the same time.
If Barack Obama said that Santa Claus is real, half of you guys on this board would go along with it. If Obama said that unless you get yourself and three friends to sit on an upside down stole, "the economy will vanish into thin air," there'd be a lot of people walking funny the next day. I could picture his speech.
Seriously though, it is true that some firms are so large and interconnected that a sudden and unpredictable collapse and wave of defaults could have been very problematic. Basically, some firms are so big that it is best that they be liquidated in a somewhat staggered and orderly manner. That is a far cry from essentially declaring dozens of firms "to big to fail," and spending our future away for the satisfaction of knowing these banks will get back on their feet and take the same stupid risks again and since they are too big to fail, need even more money in 2018-19?
No Solution.