[quote=CA renter]I fault the govt 100% for the mess they’ve created. What they should have done is stand behind the original FDIC and SIPC insurance, and let the chips fall where they may.[/quote]
I agree, they probably should have left the banks fail and insure the deposits, even the ones above the FDIC limits. Those deposits would then get moved wherever the depositor decides. This would have the effect of recapitalizing the surviving banks, and maybe the gov’t could provide additional capitalization if necessary. And the “toxic assets” of the failed banks would be liquidated at auction. So the market could figure out a value for them, instead of the current case where they’re hidden away in the balance sheets with some bullshit valuation. (Still waiting for THAT shoe to drop.)
I think it would have cost us a lot less money, and left us with a stronger banking system. And we’d have a few more unemployed idiot bankers.
