Quote:
Originally Posted by mookiemookie
Or, a better solution - if we had never gotten rid of Glass Steagall and regulated CDS as they should have been, bailing people out wouldn't have been necessary.
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If insanely risky, leveraged gambling was, erm, insanely risky, no one would do it*. There were (sensible) outfits that refused to partake. The same is true of mortgage backed securities.
Buying this crap is a choice. As long as the huge players feel invulnerable, they're going to try every possible risky thing—why not, the taxpayer will bail them out.
Letting a real correction happen would be painful, but ultimately better, IMHO.
* OK, a few would do it, regardless
