Automakers bailout is a mistake

Banks, in my opinion, should not have been bailed out, they are a business like any other and when people talk about the ‘systemic risk’ a failure represents they should remember that up until recently banks historically did fail and the world didn’t end. During the Great Depression many banks failed, if depositors are protected – and the FDIC was created due to the lack of deposit protection- then that is about all one can reasonably hope for. To falsely prop up any business that has failed is generally a mistake and will only lead to further bailouts down the line . On the same note: IndyMac failed and the world didn’t end, Lehman Brothers failed, the world didn’t end, Fannie Mae and Freddie Mac ultimately failed and the world didn’t end, the idea is to sell enough fear to justify a bailout at any expense.

Automakers in the USA are a good …

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