There were many other businesses bailed out, just just haven't hear of many of them. Furthermore, the bailouts of the ones you mention, did have somewhat of a trickle down effect an therefore indirectly bailed out others (their suppliers). Not saying that was a good thing.jcsok wrote:Trever wrote:
That reminds me: I read that many businesses actually start and grow during economic downturns. I was skeptical at first, but it does make a certain amount of sense. During a recession, plenty of people go out of business, clearly the way for new businesses to take over.
However, we've bailed out a lot of the businesses, under the "Too Big to Fail" argument. Had we not done so, they would have collapsed and others would be trying to take their place. Only the smartest businesses will survive a new great depression. If they're able to do so, however, once the collapse ends, they'll be thriving.
Its not that in recessions people go out of business paving the way for new businesses as much as people are laid off of companies, and those unemployed start small businesses of their own, in their garages etc., and as Higgenbotham discussed earlier, the new small businesses are the source of innovation. I really don't think that a lot of businesses have been bailed out. Only a few banks and a few large corporations come to mind -- GM, Chryler, GE, the psuedo governmental corps of Fannie May and Freddie Mac (which in turn bail out other banks) probably effectively 20 to 30 large banks. The smaller regional banks have not been bailed out; they're not TBTF, they haven't bought enough politicians. Had the powers that be really wanted to stimulate the economy, it would have been more effective as Helicopter Ben espoused several years ago to drop money to the masses from a helicopter. He, however, was being facetious, knowing well that the FED would only allow large banks to "'print" money through loaning electronic dollars, and then dumping the bad "electronic dollar" loans on the FED.......
There were many other businesses bailed out, just just haven't hear of many of them. Furthermore, the bailouts of the ones you mention, did have somewhat of a trickle down effect an therefore indirectly bailed out others (their suppliers). Not saying that was a good thing.
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