Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Do bailouts set a bad example?

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread		 This topic is archived.
Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU
 
SHRED Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-19-08 08:19 AM
Original message
Do bailouts set a bad example?
---

They send the message to corporations that they should grow "too big to fail", reap massive profits for them and their shareholders, and if they get in trouble then Uncle Sucker's tax dollars will catch them.

---
Printer Friendly | Permalink |  | Top
RB TexLa Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-19-08 08:22 AM
Response to Original message
1. Yes they do. But there is no such thing as too big to fail. Any company can if

managed bad enough fail and they should be allowed to do so. The good parts of the company will get bought up by competitors.
Printer Friendly | Permalink |  | Top
 
Benhurst Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-19-08 08:25 AM
Response to Original message
2. No, they send a very valuable message to the American people.
There are different rules for the rich and powerful than there are for the poor and powerless.

Printer Friendly | Permalink |  | Top
 
raccoon Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-19-08 08:30 AM
Response to Reply #2
3. Yep, if you're poor and powerless, there's "moral hazard" to consider.

If you're rich and powerful, moral hazard doesn't apply.
Printer Friendly | Permalink |  | Top
 
Whoa_Nelly Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-19-08 08:32 AM
Response to Original message
4. Fannie Mae and Freddie Mac were NOT bailouts
Bailouts allow the shareholders to keep earning.

What happened with F-Mae and F-Mac was nationalization.
We, the people are now paying for their financial risk fuck ups.

Read here for a well-written summary of this by one of our own DU'ers:
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=3948057
Printer Friendly | Permalink |  | Top
 
mmonk Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-19-08 08:34 AM
Response to Original message
5. No, the policies that force it do.
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Thu May 02nd 2024, 09:22 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (1/22-2007 thru 12/14/2010) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC