Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (34241)	3/20/2009 2:22:57 PM
From: Peter Dierks	Read Replies (2) \| Respond to of 71588

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 With all that money floating through the system few banks would have gone bankrupt. Several large ones would have failed and they would have taken some smaller ones with them.A bunch of weak small to mid sized banks would have failed. Most would be doing well. There would be a reordering and redefinition of what large means. Citi would be broken up. BOA would probably have survived. Wells Fargo would still be around, but crippled. Wachovia is anybody's guess. etc. the MORAL HAZARD argument would be 1000% better. Even if recipients just used the funds to pay off debts, the money would all end up in banks but the debt would be owed by the recipients rather than propping up liberal fat cats. 2) I don't believe that either the DURATION or the MAGNITUDE of the global collapse would be any worse. Probably shorter. The banks would have gotten all of the money they did, and more. With shrunken loan portfolios banks would be begging to loan money instead of hoarding they money. Interesting line of thought.