Why reward corporations and investors who gambled and lost? Bust them out.
>People will either buy the houses at more reasonable prices or (more likely in this case) the banks will renegotiate more reasonable terms with the original mortgage holders because they have too much supply and no buyers.
Other companies will buy the businesses at more reasonable prices or (more likely in this case) the banks will renegotiate more reasonable terms with the original mortgage holders because they have too much supply and no buyers.
And this was the issue with the 2008 fiasco. The government chose to save large financial institutions instead of breaking them up so the problems would be less likely to happen again. They chose to save large corporations over homeowners.
It is happening now with the pandemic response. I get the federal government wanted to dump a ton of money into the economy through PPP, but man, you cannot tell me the Catholic Church needed it. They are sitting on assets worth billions they could have sold/borrowed against to stay afloat. Same with large private educational institutions and public corporations.
The next round, and there will be a next round, will be more of the same. Carve outs will be rampant.
The USA should have looked at other countries providing direct income replacement to citizens. 70% income replacement sent to citizens and not force them through state's unemployment processes. Other countries did this and it worked.
Um, exactly?
As I said, the bank investors should have gotten wiped out.
The worst part is that a bank is probably the single business type that the Federal government can actually replace on a short timescale.
Why reward people who gambled and lost? Bust them out.
People will either buy the houses at more reasonable prices or (more likely in this case) the banks will renegotiate more reasonable terms with the original mortgage holders because they have too much supply and no buyers.
> instead of pouring money into banks and letting people suffer. Thanks, Obama.
That wasn't possible as liquidity also died. Solvent businesses couldn't give people paychecks because the banks had no cash. You had to bail the banks.
HOWEVER, what needed to happen was that the bank investors needed to get busted out. That was where Obama went wrong.