The obvious alternative to a bailout is letting troubled financial institutions declare bankruptcy. Bankruptcy means that shareholders typically get wiped out and the creditors own the company.

Bankruptcy does not mean the company disappears; it is just owned by someone new (as has occurred with several airlines). Bankruptcy punishes those who took excessive risks while preserving those aspects of a businesses that remain profitable.

Only one problem I see here, IB. What if no one wants to buy the bankrupted property/company? Where do we go from there?

Not trying to be snarky. I'm not an economic expert, and I'd like to know. Hell, my question might be a goof for that matter, and if it is, I'd like to know that, too.

Still reading the Mises.org material (at home, can't read it here, won't get my work done if I read it at work, and that would be very bad for me economically *chuckle*).

Still reading the Mises.org material (at home, can't read it here, won't get my work done if I read it at work, and that would be very bad for me economically *chuckle*).

#2 | Posted by LetUsReason

Most of what they list makes complete sense. People just don't think that way anymore. We base everything on debt instead of value. It's a wonder we're not worse off than we are.

Only one problem I see here, IB. What if no one wants to buy the bankrupted property/company? Where do we go from there?

But that's what the government is telling us. They are saying that they do have value. If they do not, the question is why would we use taxpayer dollars to purchase that which is worthless?

They are auctioned off in whole or broken up. There is always some recidual value in these cases, even if it's just office furniture.

He is right, this is the only way to punish the people that brought this crisis on.

Everybody buckle your seat-belts, it's gonna be bumpy. But the economy will come back because the american people want certain products and services. It will also help bring back our american manufacturing base, which the neo-cons sold off.

But we will come back as world leaders and stronger than ever. We will have shown leadership and discipline and responsibility and the world will react to that. The greedy fuckers will be bumming for pennies on the sidewalk, as it should be.

The assets are not worthless, they have a huge value.

This is an attempt at a power-grab.

I heard yesterday that in Great Britain they have had to rescue failed banking institutions too but there they have decided that when taxpayer dollars rescue a bank....the taxpayers then own that bank, good assets as well as bad assets.

Why do we want to buy just the bad assets and leave the banks holding all the good assets. I think I have to agree that perhaps bankruptcy for some banks will be the only real answer to this mess.

The assets are not worthless, they have a huge value.

This is an attempt at a power-grab.

Yeah, I was playing devil's advocate. They certainly have value and would be purchased.

It's clear that the banks are trying to hold us hostage with a credit freeze. They are the ones that need to blink.

It's clear that the banks are trying to hold us hostage with a credit freeze. They are the ones that need to blink.

#8 | Posted by IraqiBukkake

The only power the american public has now is with how and where we spend our money.

If you live off credit, you are fucked right now. Unfortunately, lot's of businesses do just that.

If we hold our money now, make no large purchases and we do it as a country, just for a few days, you will see a new day dawn on congress.

Look what happened when people cut back their gasoline consumption by 1%.

BTW, I am probably one of the ones that will loose my job because I work in the oil and gas field. The speculation around the office is that that won't happen because oil companies have lot's of cash.

So, we're saying here that these bankrupted companies, or at least parts of them, will be bought up. My question was a goof. I can live with that.

More and more I think about it, I think I only get screwed if they decide to call in all my debt all at once. Then I'm definitely screwed. But, if things go they way they have been for me (not late with payments and so forth), I might come out of it... only slightly the worse for wear.

Bankruptcy, not bailout, is the Answer

Really?

And not another trillion dollar tax cut?

Isn't that the rethug answer to everything? tax cuts for the wealthy?