Economics/Class Relations

Why Not Let Banks Fail?

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TUESDAY, MARCH 14, 2023
Make no mistake; the American Revolution was not fought to obtain freedom, but to preserve the liberties that Americans already had as colonials. Independence was no conscious goal, secretly nurtured in cellar or jungle by bearded conspirators, but a reluctant last resort, to preserve “life, liberty and the pursuit of happiness.”
– Samuel Eliot Morison, The Oxford History of the American People [1965]

HORNBERGER’S BLOG
March 14, 2023

Why Not Let Banks Fail?
Imagine that for the last 100 years, the federal government’s policy was to bail out every business that was in danger of going under. The policy would consist of shoveling large amounts of subsidies into the business in order to help it remain in business. If, however, the business failed anyway, the federal government would pay a large sum of money to the …
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