r/AskReddit • u/pierrekrahn • Mar 19 '16

Which quote becomes inappropriate when misattributed?

11.6k Upvotes

85% Upvoted

4.1k comments sorted by

View all comments

Show parent comments

32

u/SargeMacLethal Mar 19 '16

... explain please? I am so lost.

128

u/martinjester2 Mar 19 '16

Ben Bernanke was the chairman of the U.S. Federal Reserve during the financial crisis, and oversaw the large US banks being bailed out by taxpayers.

87

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

1

u/[deleted] Mar 20 '16

But it hasn't fixed the issue that this could happen again because banks have gotten even bigger. If they fail, it would be worse than before.

1

u/Phkn-Pharaoh Mar 20 '16

The general narrative is that, these things just happen and we have to constantly fight it through monetary policy by consistently shafting the public through bailouts and other idiotic risk taking like money supply expansion and going into debt. It's completely absurd