this post was submitted on 12 Jan 2024
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[–] Bye@lemmy.world 1 points 10 months ago (3 children)

The bailouts were loans. The us govt got that money back.

Those banks should have been punished though, allowed to fail.

[–] Ensign_Crab@lemmy.world 1 points 10 months ago

They didn't know that they would get the money back at the time.

[–] explodicle@local106.com 1 points 10 months ago

Yes, the private sector did have enough capital to cover those loans. The public sector did it because it was a bad investment when you count opportunity cost.

[–] Tak@lemmy.ml 1 points 10 months ago

Didn't the bailouts return less money with inflation though? We can't even give students less interest than inflation with student loans. If the tables were turned the banks wouldn't have taken less than 5% interest.