Help me understand something.

[burniegoeasily]

About the bail outs. If we let a bank die, wont their assests be bought up by healthy banks? Is that not how the game has been played for years? If G.M. tanks, wont Fords, and the other auto companiesprofit margin increase? Wouldnt that cause more jobs to develope?

The market needs to be allowed to settle. All these bailouts are just makeing the markets even more wishy washy. Our dollars are basically getting thrown into a run away fire.

[Lanse couche couche]

I would assume that one perspective on bailing out banks ispreventing the chain reaction that could be caused if they start closing. If there is a general run on banks by people to pull out all their money, then even the healthy banks could be in trouble. Of course, i am just basing that on the scene in Its a Wonderful Life.

[bergall]

ORIGINAL: Lanse couche couche

I would assume that one perspective on bailing out banks ispreventing the chain reaction that could be caused if they start closing. If there is a general run on banks by people to pull out all their money, then even the healthy banks could be in trouble. Of course, i am just basing that on the scene in Its a Wonderful Life.

This is quite true. Hence the FDIC guarantee on 100k accounts or less, to make sure the little guy
will never lose his money regardless of whether the bank fails or not. The admin is looking to double
that to 200k....but I don't see anything being secured by that because a 'run' is caused by panic, and
panic is never logical.... The other thing to be realized here, is that banks are 'making a go' of it with
deposits being at the lowest levels...not many folks saving nowaways.....