What if we did not bail out the banks?
- Thread starter cubical
- Start date
This is what you would get if the largest banks were all allowed to fail at once:
If the largest banks fail at once, the fear and pessimism would be so deep no one would have confidence to start a new one. Without major banks to provide credit lines to businesses then they can't expand or operate, can't buy raw materials, can't add to payroll, etc.
'50 new Wal-Marts will create 102 million new jobs'
fine, but who would buy goods from these 50 walmarts. i think, not sure, that walmart has annual sales of $300B which means 50 x 300B = 15T worth of goods.
US economy is not big enough to buy $15T from just one company.
The main reason for bank bail out is not that they would cease to exist but the credit crunch that would basically 'cold freeze' the whole economic system and bring the nation to stand still.
CNN reports that there are 3M more layoffs in the pipeline before the trend reverses. Bail outs are not over yet!
fine, but who would buy goods from these 50 walmarts. i think, not sure, that walmart has annual sales of $300B which means 50 x 300B = 15T worth of goods.
US economy is not big enough to buy $15T from just one company.
The main reason for bank bail out is not that they would cease to exist but the credit crunch that would basically 'cold freeze' the whole economic system and bring the nation to stand still.
CNN reports that there are 3M more layoffs in the pipeline before the trend reverses. Bail outs are not over yet!
Alternatively
USA has 300 million citizens.
Now 10,000,000,000,000/300,000,000 = 33,334.
If USA government gives $10 Trillion to 300 million USA citizens. Each citizen will get $33,334.
Each USA citizen will have $33,334 to spend for USA economy. Ultimately USA economy will get $10 Trillion purchases.