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I get that there is a human side to bank runs and no one wants individuals to get hurt financially, but how can anyone be for a bailout? Have we not learned anything from 2008? If one bank gets bailed out, why not the next? Why stop at banks, why not all industries? If the government comes in to socialize all losses, what's the difference from nationalizing that business to begin with?

These actions aren't free and aren't without consequence. For a lot of us, the bailouts and TARP were the very reason that we're here right now and to push all that aside and to advocate for those same actions again just doesn't make any sense to me.

orangedog 2y ago

ppl are still under the illusion that money on deposit in a bank belongs to them

In fact, it does not

It belongs to the bank

An account balance is simply a promise to remit $ when requested by depositors

bank runs have happened over centuries, when ppl lose confidence

government comes in with bailouts to restore confidence

they do this by expanding the money supply thus adding to public debt

‘WE ALL MUST PITCH IN TO AVOID GLOBAL COLLAPSE’

it will happen again, it happens every time

within weeks everyone goes back to life and forgets everything

and voila..confidence is restored

ppl make deposits..and banks lend at near zero fractional reserve requirements BY LAW

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