Originally Posted by badhatharry
As I have said many times, yep!
And yet folks of all stripes believe that if these bastions of the economy hadn't been bailed out the whole thing would have collapsed. I think this is the big lie. Surely there would have been some pain but the folly of letting these folks think that they will always eventually get bailed out just encourages further recklessness.
I don't know if it would have been disastrous or not, but I do think things should not be too big to fail in the first place. If Goldman is too big to fail, then the CEO of Goldman is, not figuratively but literally, the highest paid bureaucrat in the government.