The Real Cost of the 2008 Financial Crisis
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The Real Cost of the 2008 Financial Crisis
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Re: The Real Cost of the 2008 Financial Crisis
#2But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
Re: The Real Cost of the 2008 Financial Crisis
#3But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
We haven't escaped the depression; the bailouts and quantitative easing simply delayed it for a bit, and the more it is delayed, the worse it will be. It would be far better to have economic corrections along the way with little dips than to keep the house of cards going on worse and worse foundations until it all falls apart in a large depression. Little distortions can be corrected in the short term, but keeping those distortions in the economy long enough can make some very bad effects in the long term. So, we may get the worst of both worlds.
Even if the government had simply paid off everyones' mortgages, it would be better for the average person; but instead they transferred the approximate amount required to do exactly that to the banks directly in bailouts. Which means people got stuck with bill for the bailouts [from taxes] and the mortgages; which is rather unfair to the average Joe.
Re: The Real Cost of the 2008 Financial Crisis
#4But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
Debt is worse now than in 2008. We haven't / didn't escape anything, just passed it on to future generation(s).
Future generations will be paying the bill for mistakes of their parents.
Re: The Real Cost of the 2008 Financial Crisis
#5But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
We haven't escaped the depression; the bailouts and quantitative easing simply delayed it for a bit, and the more it is delayed, the worse it will be. It would be far better to have economic corrections along the way with little dips than to keep the house of cards going on worse and worse foundations until it all falls apart in a large depression. Little distortions can be corrected in the short term, but keeping th…
> We haven't escaped the depression; the bailouts and quantitative easing simply delayed it for a bit, and the more it is delayed, the worse it will be.
How so?
Re: The Real Cost of the 2008 Financial Crisis
#6[dead]
Re: The Real Cost of the 2008 Financial Crisis
#7But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
We haven't escaped the depression; the bailouts and quantitative easing simply delayed it for a bit, and the more it is delayed, the worse it will be. It would be far better to have economic corrections along the way with little dips than to keep the house of cards going on worse and worse foundations until it all falls apart in a large depression. Little distortions can be corrected in the short term, but keeping th…
Sure, but allowing half the banks to fail would not have lead to a little dip. The collapse of Lehmans was very damaging for many perfectly healthy, well managed firms that depended on them. The only reason the effects were not worse was that there were other banks around to pick up the pieces, but if the domino effect had been allowed to play itself out the dramatic loss of capacity in the banking sector would have been truly catastrophic.
Note that the bailout money wasn't simply gifted with no strings, it was leant and paid back with a profit to the tax payer. Of course QE had it's costs and they were very high, there were other costs as well, but they're often exaggerated.
Paying off everyone's mortgages sounds lovely, how nice. In reality everyone would have rushed out and re-mortgaged their properties again, attempted to re-invest or spend their wind fall leading to massive house price inflation and a titanic credit binge the likes of which the world has never seen. The consequences would have been apocalyptic.
Re: The Real Cost of the 2008 Financial Crisis
#8But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
Debt is worse now than in 2008. We haven't / didn't escape anything, just passed it on to future generation(s). Future generations will be paying the bill for mistakes of their parents.
As a parent, I fail to see exactly how I'm guilty of anything here. I used the banks because I had to, I listened to their advice because I can't possibly become an expert on their subjects, etc. I even voted for people who want to regulate them. I don't play on the stock exchange (pension funds do, with my money). I didn't do anything wrong.
My children will pay for the mess a few made by pushing unreasonable expectations and by not listening to people like me.
There are some fights that must be fought by others.
Now if you can provide me with decent alternatives, I'd be glad to here from them. But remember, I have to live in the system.
Re: The Real Cost of the 2008 Financial Crisis
#9But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
Icelands seems to be doing well, just Google Iceland and banks, for example: [0]
[0] https://www.bloomberg.com/news/features/2016-03-31/welcome-t...
Re: The Real Cost of the 2008 Financial Crisis
#10But what was the alternative to the bailouts? Another depression? I feel we made it across fairly well.
Debt is worse now than in 2008. We haven't / didn't escape anything, just passed it on to future generation(s). Future generations will be paying the bill for mistakes of their parents.
Will they pay the bill or will they revolt? I feel it is time for some of the latter.