Wall St. Just Wrote the Law Governing It

[Indy]

[Indy]

[H. Muir]

. . .

[Indy]

[H. Muir]

. . .

[Indy]

a) Totally agreed and b) where have you been all my life?

[spacemonkey]

Imo, when something goes bust, it s done. No bailout by the govt for anyone for anything. All that means is investors better damm well do their homework before they put a dime on anything. From the smallest investor to the largest financial institutions, there are no more free pass bailouts for anyone, period.

[Indy]

Yes, SPM in what's supposed to be our "capitalist" system that is what is SUPPOSED to happen.

And you raise a good point: if I go gamble away all my money there are no bailouts for me. But if my bank does, there are.

The problem lies in that because we have TBTF banks they have a gun to our head because, if we do let them go bust, they'll take down the whole economy (at least here, maybe worldwide) with them. So while in principle it may sound good to teach them a lesson by letting them fail, we all go down with them.

So what is the obvious solution? Because it is obvious.

[spacemonkey]

The only TRUE TBTF is the consummer. If consummerism fails en masse, its just over.

[Indy]

Not really. If one of these guys collapses the whole system too many of us will be out of jobs and homes (like last time) to consume much.