Should Government Bail Out Big Banks?
Economy | Information | History | Online | Facts | World | Global | Money
Should the government bail out big banks that may otherwise go bankrupt? Or should it let them go under, as it did with Lehman Brothers in 2008? Economist Nicole Gelinas, a fellow at the Manhattan Institute, has the answer, and it will have big implications for policymakers when they grapple with the next economic crisis. Donate today to PragerU: http://l.prageru.com/2eB2p0h Do you shop on Amazon? Now you can feel even better about it! Click http://smile.amazon.com/ch/27-1763901 and a percentage of every Amazon purchase will be donated to PragerU. Same great products. Same low price. Charity made simple. Visit us directly! https://www.prageru.com You can support PragerU by clicking https://www.classy.org/checkout/donation?eid=60079 Free videos are great, but to continue producing high-quality content, contributions -- even small ones -- are greater. LIKE us! https://www.facebook.com/prageru Follow us! Twitter: https://twitter.com/prageru Instagram: https://instagram.com/prageru/ If you are an educator and are interested in using material like this in your classroom, click https://www.prageru.com/educators
Comments
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This is an example of how letting rich people too much power lead to, and the worse could be possibly probable.
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Well at least Donald Trump keeps a keen eye on Defense spending.
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De-regulation is what lead to risky bank transactions.. Regulations prevent risk taking from ruining banks. Idk why people are opposed to preventing banks from taking bets that could kill them and us financially...
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what about bailouts on big corporation
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By eliminating the possibility of total failure, and resultant bankruptcy that goes with it, the government has encouraged completely reckless behavior in the banks and those they have bailed out. A telling figure here is the fact that current 2016 debt levels for these bailed out banks are now an average of TWICE or more what they were during the height of the 2008 economic crisis! If you want to know the full details and truth of what is going on I would highly recommend that you consider reading the David Stockman “insider” book “The Great Deformation: The Corruption of Capitalism in America”. FYI David Stockman was director of the Office of Management and Budget under President Reagan. While I don’t normally recommend books in my YouTube "rationalist" commentary posts, I found this book to have been a real eye opener for me from an extremely first hand authoritative source on this situation! I expect you will be as shocked as I was to learn the real truth and facts of what has been going on for many decades and why. What she is saying here in this video is just the very extreme tip of the iceberg of this situation.
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Logic: you either bailout EVERYONE, equally, fairly, or you bailout NOBODY. Pure & simple.
Pure logically consistent capitalism for EVERYONE. That means government does NOT get to arrest anyone for you:
go solve your own crimes. That means no nonconsensual force: nobody is forced to help anyone & nobody hurts anyone.
That means nobody forces new people into existence: that means, no breeding. That means: antinatalism.
That includes no breeding billions of animals for meat & fur. You're hungry? That's not the animals' problem.
Or, pure logically consistent socialism for everyone: government helps everybody, guaranteed minimum income,
government works for EVERYBODY, because it is the poor's & prisoners' government, too.
That is all logic means: logical consistency. -
THE MYTH OF FREE MARKETS EXPLAINED BY A CAPITALIST: TOO-BIG-TO-FAIL BS.
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If banks taking bigger risks is a problem, then regulation to limit the degree of that risk would address it, no?
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Big mistake! Financial bailout, then a gift from the fed, here banks, hold this money on reserve and extend credit with it. This will stimulate the economy. Next, ez credit for autoloans, unsecured consumer credit, and margin accounts. Bubbles in all three.
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Ok come on guys. the reason the bros needed the govt to bail them out was because of poor business practices.
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Interesting... so government is the problem but regulations aren't going to do any good.... so the solution is to just NOT bail them out and cause a global wide economic disaster...? So banks made bad decisions because they knowingly thought the government will just bail them out. This is stupid.You actually think the banks will regulate themselves... that is hilariously false.
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This is so wrong. Absence of regulation in areas like credit ratings allowed "big investors" to think all was well. Don't think the guys who made tons of money from selling mortgage-backed securities ever cared whether their banks would be bailed or not. Big investors wouldn't have the toolset to discover how the securities market has affected the risk assessment process in banks giving loans to the public.
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An presidents trumps answer to fix this is --- build a wall.
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I'd love to know what PragerU thinks about Donald Trump
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great video
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I'd do anything to be as clever as her.
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Peter Schiff explained this very well. Capitalism was the best experiment to ever succeed and it began to fall apart once government got involved.
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If your one job is to manage money then shouldn't you be good at? Also if you clearly can't do your job shouldn't you either be fired or go out of business? OH I forgot they are rich so the government has to help them. they should have just let them go under and eat the loss like everyone else.
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The banks were not regulated enough, and made too risky Investments. If America would regulate Wall Street you would not have a recession at this scale again. There was not a big recession or meltdown in any time from 1945 to the 70's, and this was because the markets were regulated, and the banks were not allowed to make risky Investments.
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I really enjoy learning this stuff. I'm so poor that when I think about how much money people have invested, it makes me depressed. Like I can work go to school get a few extra degrees for a few hundred years, and still not have even a notable percentage of the kind of money some of these investors have.
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