Quote:
Originally Posted by legion
That's the root of the problem. We have all of our eggs in just a few, huge baskets. We should be breaking up the huge banks so that the consequences of stupid decisions are more isolated.
The problem we have now is that one mega-bank does something stupid, all of the other mega-banks follow for fear of missing out on profit before the stupidity is fully realized.
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Legion advocating government regulation?!?! What has happened to PPOT in my absence??
Actually, have had way too much on my plate to participate lately, but have read a few threads about this banking/credit problem. It may well be that some form of "bailout" is a practical necessity, but it can never be the cure - I'm very much on board with Number Six on that.
Ultimately, we have to get past the "living on credit" mentality to develop a good financial foundation. That won't be easy or popular, but one lesson - previously learned in the Great Depression - and sure to be learned again is that those not swimming in debt will come out of this the best. Perhaps the only way to drive the lesson home is to let the house of cards fall.