What would be happened if governments don't bailout banks

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I wondering what will be happened if USA and UE refused to bailout banks.


I don''t understands why countries of the world pay for mistakes of the bankers, what will be happened if governments said no to financiers

I'm no financial expert but I speculate there could be severe consequences for the economies of those countries. Plus there could be riots in the streets if people lost all their savings. There could also be international consequences too and countries with international loans could find their loans withdrawn or their currency devalued and/or inflation running riot and recession, loss of jobs etc, much worse than is happening at the moment. I think the intention of the bank bailouts was to bring stability back to those countrys' economies.

Let them burn!! !

I probably would have lost all or part of my savings and my pension if the Dutch government hadn't nationalized a large Dutch bank.

In USA's case, there'd be FDIC protection up to 200K per account. It's an insurance system put into place after the Great Depression when banks closed and people lost all their savings.

I'd think a better solution myself would make an emergency policy in the insurance to protect basically all the money in the accounts and then let people either withdraw it or keep it in the bank. Laissez-fair...

Unfortunately the bankers have governments over a barrel and effectively force them to bail out the banks. A courageous government would protect all savings then liquidate the bank and tell the bankers to go to hell. Outstanding loans by customers of the bank will NOT have to be repaid.

Uhm, I'm not a fan of rewarding the corporations that screwed the American economy, but the bailouts were necessary. If the bailouts did not happen, the dollar bills in the average American's wallet would be worth considerably less than toilet paper today. As much as I want to see the predatory corporation banks burn, if they fail, they will easily take the whole country (and perhaps the whole world) down with them.

I don't like it. Not much I can do about it as an individual, except for not involving myself with the predatory corporation banks. If more Americans did that and stuck with the smaller, local banking/credit union operations, it would send a clearer message and it would be more beneficial for the world's economy. Too many people like to stick with convenience, and that'll kill us quicker than anything else I can think of.

capitalism has outlived its own utility.

We need a resource based economy, now.

Governments bail out the banks and then banks foreclose on all of the property of the poor.

I think iceland let their banks fail and then prosecuted them to their country is now doing much better.

The Bank Stock and Bond Holders would lose. FDIC would cover deposits, and the bank would be sold. Good assets, buildings, loans, would go toward paying off debts. If anything was left, it would go first to the Bondholders, a form of debt, then the Stockholders, Ownership.

The FDIC closes banks on Friday, and opens them on Monday under new ownership. It happened to hundreds.

The Bank Bailout protected the people who caused it from the LAWS! They should have lost Ownership Interest. Even the large banks can be broken up, and sold to solvent banks. Instead they were given cash, Merril Lynch, Countrywide, some almost as big banks, as a reward for electing Congress and the President.

At the worst, Nationlize, put it in the hands of the FDIC, wipe out the Stock and Bond holders, for anything else brings in Moral Hazard, being saved by the Government leads to others being saved by the government.

There is no incentive to not put the economy at risk, if investors do not lose all. The 1% own 99.9% of all stocks and bonds, that is who the government bailed out.

The banks were sound in that they paid back the TARP loans. They would be just as sound if ownership had passed to the Nation.

If there is no risk, it is not Capitalism.

It would be rough, but life would go on.

The financial system is so full of unlawful squiggle that it's not funny. We need honest money and monetary policy. Much of the "debt" owed doesn't really exist in anything tangible. Most all the money (more than 90%) in existence only exists on ledgers.

To fix some problems, you have to let them crash and burn first. All the bailouts do is try to maintain a failed status quo.