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Reply #75: How many of our jobs would still exist if the govt hadn't rescued the banks is a better question [View All]

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Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
bhikkhu Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Dec-12-10 12:49 AM
Response to Reply #55
75. How many of our jobs would still exist if the govt hadn't rescued the banks is a better question
It was all discussed at the time, but the recession would have been much deeper and longer lasting - after the banks failed, manufacturing would fail, then the service industries, and so on. Without even considering the effects on government (FDIC coverage is inadequate for insured deposits in such a disaster, for example), how do you think we would get things going again? Our current system requires capital to run, but capital needs are mediated by the banking industry...with that in ruins, you would have to create a national bank from scratch, in the midst of a giant national emergency with a big (D) on it. Assuming we still have a government, can you imagine the fight it would take to create a national bank? The repugs would be talking secession over that one...

As it is we don't have to dig out from the wreckage - we provided short term low interest loans, nothing collapsed, the loans all got paid back, and earlier this year the big reform package was passed to hopefully better regulate the banking sector.
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