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by FeeTinesAMady
4179 days ago
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But all that would have been needed would be for the money that the government used to bail out the banks instead go directly to the depositors, and for the government to seize all the bank's assets to help pay for that. All they would need would be the relevant records. That would only be impossible if the depositors had so much money invested in the banks that there wasn't enough to cover them. Was that the case? |
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Well, you're probably right in that I think there would have been enough money between the banks' assets and the amount the government contributed to cover the amount immediately owed. Probably. I'm just guessing really, but let's say that's true.
What would the next day have looked like? My guess is that the banks who weren't already failing probably would start to fail very quickly. My guess is that if you let the "bad" banks actually fail and cease operations, with the federal government giving out hundreds of billions of dollars in deposit guarantees directly to the people, you'd have had lines at the banks the next day as everyone else rushed to get their money out of the banks that hadn't failed yet.