SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : American Presidential Politics and foreign affairs
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Peter Dierks who wrote (34230)3/20/2009 10:29:01 AM
From: DuckTapeSunroof  Read Replies (1) of 71588
 
Re: "Are you thinking that throwing a TARP over the recent problems was a bad idea as well?"

Now that's an interesting question!

I heard just yesterday that all the "bail-out funding" if reduced to a per-capita amount, would amount to a bit over $10,000 for each and every single American.

Which got me thinking: I expect that IF the American government had simply cut a check for $10,000 to EVERY SINGLE AMERICAN (kinda like Bush's rebate check scheme, but larger)... *INSTEAD* of bailing out ANY BANK or INSURANCE COMPANY or INVESTMENT BANK at all --- and then stood aside as all the big banks collapsed... that the financial crisis would actually wind up shorter and milder then what it is / will be as a result of bailing out MEGA-BIG financial firms.

Now, admittedly, most likely the entire financial system for much of the world would have ground to a halt for a WHILE --- AND NEARLY EVERY SINGLE BIG BANK IN AMERICA WOULD BE IN BANKRUPTCY RIGHT NOW AS WE SPEAK....

Still, I believe there would be some significant benefits to 'air-dropping' money to ordinary Americans as opposed to the "save the institutions" plan that the Government went with.

1) the MORAL HAZARD argument would be 1000% better. (The frauds and fools and the excessive risk-takers would not be rewarded, and we would eventually re-start our financial system anew....)

2) I don't believe that either the DURATION or the MAGNITUDE of the global collapse would be any worse.

(Interesting question....)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News