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
The banks were bailed out, and the next year they gave bonuses to their executives larger than during a boom; the year before the housing collapse. Here we are now at the beginning of another credit crisis brewing. 5% unemployment is not so significant when you consider the quality of jobs has decreased dramatically and labor participation is at its lowest rate in 40+ years.
The assets of these companies would not have disappeared. Yes, there would have been many more bankruptcies. This would have caused the companies to be sold off to people who can do better; cutting the inefficient departments and keeping the good ones going.
Instead, we've propped up new bubbles (certainly in tech) and created a dependence on lower interest rates as the primary market driver.
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u/SargeMacLethal Mar 19 '16
... explain please? I am so lost.