Bailouts keep the economy running and secures jobs.
Post by twetch#5040
Zoom out. That is such short term thinking.
Bailouts keep inefficient and/or incompetent companies from going bankrupt. Delays and exacerbates the problem. It prevents the resources within company from being recycled into economy for higher/better use.
What the chain says
- Block
- 632 034
- Time
- 2020-04-24T17:17:48Z
- Signer
- 1NnjDhcC9qaoVwdJGv1TLK6nmNVrsTPK5T
- App
- twetch
- Type
- post
- Content type
- text/plain
- Name in tx
- twetch#5040
Fields the transaction did not carry are omitted. Open the payload to see the bytes as stored.
Signed by
1NnjDhcC9qaoVwdJGv1TLK6nmNVrsTPK5T VerifiedReplies (11)
I disagree, what creates anomalies is the wrong use of credit. When a credit bubble bursts, companies that were not engaged in bad practices are dragged down. @3 the 1929 > 1933 period is your historical example of what not bailing out leads to.
Of course they are dragged down, as that’s the ebb and flow of a market. Majority of strong worthwhile companies will endure.
companies not prepared for a market crash aren't properly managing risk
big companies going bankrupt opens up the market to new and innovative companies
so what does student education do?
The market crash is just a symptom. The real problem is the sudden shrink in money+credit supply and consequent cost of liquidity.
Not all bailouts are good, not all are bad.
Go back to 1934 and try to convince them of that 😜