Is it right for the government give a huge bail out to banks to keep them in business?
I think is not right to do that, why do the banks deserve our money if they make the risk choices and if things wouldn’t work out, they should’ve lost their own money not ours. but like the video says “the government created the perverse incentive to do so by guaranty all the bank deposits and mortgages” that’s why all the banks start taking those ricks. “the maximization of happiness ultimately determines what is just and unjust’(Shaw,87) and for the government the greatest is the happiness.
2 Comments for “M3 (Juan Sebastian)”
Hey Juan, I thoroughly enjoyed your video post; Im a big fan of Stossel. I think you are right and the video puts a good perspective on the issue. We have created a bigger issue by not allowing the banks to fail and address the issue directly. Now the banks are more dependent on the government’s money and the government already has plenty of financial issues to deal with. When the next crisis hits the banks, it will be way worse because things were not done properly to fix it the first time.
Although gov’t regulation is meant to control things like this, when tax payers are put on the line to flip the bill for mishandling, its a scam. Who are they looking out for….themselves and the CEOs, Accountants, Top Execs. If one of us went into business and then did some unethical things and asked for a bailout, who would come to the rescue. No one. Good post.