Re:Why regulators should focus on bankers’ incentives
by stickfigure on Monday April 10, 2017 @04:20AM
(#14076852)
You are being disingenuous. In terms of social cost there is little practical difference between taking value through taxation and taking it through currency inflation. The Fed, FDIC, FNMA, FHLMC, and pretty much every other acronym that starts with F is backed by the full faith and credit of the US government. No, not officially, but the market has absolutely no doubt that this is fact.
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Re:Why regulators should focus on bankers’ incentives
by MR4D on Monday April 10, 2017 @06:07PM
(#14082974)
Although we do (mostly) agree, I don't think it's disengenuous. Here's why - other businesses/industries have been bailed out, including the following. Reasonable failures are tolerated, but systemic ones are not - regardless of the industry:
- Steel Mills (in 1952)
- Railroads (most notably Penn Central in 1970)
- Car companies (all three in the last 40 years)
- Manufacturers (various)
- Utilities (mostly nuclear plants/companies)
- Airlines (post 9/11)
My impression is that most people believe the government will step in before any industry is ruined (assuming a quick decline, not necessarily a slow one over many years).