Why The Bailouts Are Not Working

Discussion in 'Economics' started by libertad, Apr 16, 2009.

  1. The bailouts are only serving to give banks time and leverage to NOT sell off the assets they should be liquidating ASAP at current market prices, and putting them in a stronger position relative to their debtors in terms of negotiations.

    It's producing a terrible effect whereby it's empowering banks that should have little leverage or negotiating power based on their stupid past decisions and lack of risk management.
     
    #11     Apr 17, 2009