View Single Post
Old 07-24-2009, 06:17 PM  
Dcat
Confirmed User
 
Dcat's Avatar
 
Industry Role:
Join Date: Aug 2003
Location: Mexico
Posts: 1,607
Quote:
Originally Posted by kane View Post
In a perfect world you are correct. Sadly, when it comes to nationwide economics there is no clear cut right and wrong. Bank of America is huge and if it had failed it could have brought with it tons of other banks and cost a lot of people their jobs. Maybe it would have quickly been replaced by another bank and the damage would have been very small, but maybe it would have set off a chain of events that drove us further into the ground.
Regardless of size, I think that ANY and ALL banks that are no longer competitive, or that involve themselves in highly risky behavior should be permitted to fail. When that is allowed to happen, it purges the poor performers from the market so that leaner, better run banks can emerge. Yes, jobs are lost, but I think it's better to quickly cut the losers free than it is to continue with the misguided idea that propping them up and delaying the inevitable will somehow be better.
Dcat is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote