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A comment on The Real Cost of the 2008 Financial Crisis. Parent comment

Re:The Real Cost of the 2008 Financial Crisis by docker_up on Tuesday September 11, 2018 @04:08PM (#17962877)
Yes, you do. If they are by definition too big to fail, then them shutting down could cause runs on banks. When people's confidence in banks crashes, then very bad things happen to our financial system which is predicated on the idea of people keeping their money in banks and bank accounts.

Even people pulling their money out of money market mutual funds almost caused a collapse of the monetary system, which is why the Fed had to secure those.

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Re:The Real Cost of the 2008 Financial Crisis by jhayward on Tuesday September 11, 2018 @05:51PM (#17963714)
Instead of bailing out the banks, they could easily have simply been put in receivership, with Treasury as the recevier in control. Simply re-capitalize them from the federal reserve, and they don't have to miss a single hour's worth of operation.

Unwinding the mess of CDOs, etc. would have been long and tiresome but, with a little help from a convenient executive order or two perfectly do-able.

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