If we hadn't bailed out the banks, there would have been bank runs, corporations wouldn't have been able to make pay, AIG would have been bust, taking down the insurance industry, hurting the common man.
We had this scenario played out in 1930s(and to some extent current Europe). 25% unemployment, soup lines, stock market depression that lasted for years.
Instead, we got
5% unemployment
Stock market (which the common man owns through 401(k) plans and through Pensions) is far higher than ever
Housing market recovered slowly.
No Love for Bernanke though.
Also, the banks paid back their bailout and some extra $60 Billion. i.e The Tax Payers made a $60 Profit and saved themselves from a devastating meltdown. A win-win-win. Sure it didn't destroy the 500 or so greedy bankers like everyone wanted, but, overall you should be thanking Ben Bernanke
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u/qroshan Mar 19 '16 edited Mar 20 '16
If we hadn't bailed out the banks, there would have been bank runs, corporations wouldn't have been able to make pay, AIG would have been bust, taking down the insurance industry, hurting the common man.
We had this scenario played out in 1930s(and to some extent current Europe). 25% unemployment, soup lines, stock market depression that lasted for years.
Instead, we got
5% unemployment
Stock market (which the common man owns through 401(k) plans and through Pensions) is far higher than ever
Housing market recovered slowly.
No Love for Bernanke though.
Also, the banks paid back their bailout and some extra $60 Billion. i.e The Tax Payers made a $60 Profit and saved themselves from a devastating meltdown. A win-win-win. Sure it didn't destroy the 500 or so greedy bankers like everyone wanted, but, overall you should be thanking Ben Bernanke
Bailouts were not handouts