Will bailouts become more frequent?

[Alfonso]

1989 - savings and loans bailout
2008 - banks bailout
2020 - covid19 bailout aka wall street bailout

bailouts get bigger every time. But will they become more frequent?? Do we need more bailouts to bailout the aftermath of the previous bailouts?

 

[Xzavier]

With every bailout imo strengthens the control the government have on the banks and other institutions and heightens regulations.

I think we will soon just start to see government ownership of financial institutions instead

 

[Terrance]

I think we will soon just start to see government ownership of financial institutions instead

2008 brought lots of market consolidation---USA giants like washington mutual, merrill lynch, and bear stearns were absorbed by the biggest banks, jpmorgan chase and bank of america. if a crisis hits, they'll get TARP-like bailouts while acquiring failing banks IMO, further consolidating the industry.

citibank actually did get partially nationalized after that crisis. i assume the government will sell their stake ASAP (like they did with citi in 2010) but i guess things could play out differently if the banks don't return to profitability.

 

[Grayson]

Bailout will continue to happen as long as the conditions at the moment demands it. In 2008 during the recession a lot of families would have been further thrown into agony with government offering the bailout. In the current pandemic, without government intervention to families and the economy as a whole, there would be massive poverty in the land with companies out of business which further tank economic indices, any reasonable government needs to do everything needed for restoration.

 

[Jayden]

2008 brought lots of market consolidation---USA giants like washington mutual, merrill lynch, and bear stearns were absorbed by the biggest banks, jpmorgan chase and bank of america. if a crisis hits, they'll get TARP-like bailouts while acquiring failing banks IMO, further consolidating the industry.

citibank actually did get partially nationalized after that crisis. i assume the government will sell their stake ASAP (like they did with citi in 2010) but i guess things could play out differently if the banks don't return to profitability.

I could see it being run as a committee type system where the best people that apply are put in charge of running it but then ultimate decision lies with the government - and shares aren't distributed (this might be how bulling societies were meant to work)?

That succession of smaller banks being absorbed by bigger ones, can't end well imo. You're going to end up with too much market dominance.

 

[John]

i think 2030 next bail out

.... or war lol

 

[Wyatt]

Or maybe we're just not going to save anyone next time? Why if no one appreciates it? And why if then there will still be a crash? Let it take its course and just see what happens in the end. Maybe this is the Golden path that we all need?

 

[Henrik]

1989 - savings and loans bailout
2008 - banks bailout
2020 - covid19 bailout aka wall street bailout

bailouts get bigger every time. But will they become more frequent?? Do we need more bailouts to bailout the aftermath of the previous bailouts?

When the economy is growing the companies are whining about government regulations and taxes.
When the economy is in a recession/depression all the companies want the government to save them.
That's the hypocrisy of capitalism right there.
After several decades,the US economy will reach a point,where the companies will not be able to exist without constant bailouts.
This will be a government controlled economy,pretty similar to the communist centralized plan economy.