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Originally Posted by Pleasurepays
my basic problem with that is that letting shitty companies collapse and then everyone rebuilding, forces everyone to learn the lessons, to change, to adapt etc (consumers, wall street, banks... everyone) ... and forces everyone to be a little more responsible going forward having learned some painful lessons. and the other way, we create a bigger problem, prolong the recession/depression and everyone has learned that no matter how bad and irresponsible they act... government is obligated to bail them out at the direct expense of people who act responsibly.
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I do agree that there a good lessons to be learned in this recession and the things that are coming from it. For example that video that was in another thread about a guy who was making 750K a year and is now delivering pizzas. He has a million dollar home and hasn't paid the mortgage in 2 years. They have over 100K in credit card debt. He tried to start a hedge fund and didn't do it. He drained his savings and 401K in the effort and he and his wife both admit they lived the high life while he was making all that money. They had country club memberships and expensive vacations. It sounds like the spent every penny that came in and then some so when it came to an end he was screwed. He should have paid off his house and set aside enough money to guarantee that they had a solid future then used the excess to start a business or play around with.
But people don't act responsibly. They spend every cent they get and don't feel bad about it. They buy things they know they can't afford and don't bat an eye at it. Maybe some of this will change that, but I really doubt it.