alt Hacker NewsThe problem is if large banks fail they take everyone else with them. We should have dealt with this in 2009, but for some reason it didn't happen.
But money talks, I guess.
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fancyfredbot • yesterday at 7:17 AM
Things have changed since 2009. It would be private credit which fails this time, not the banks.
Private credit is not supposed to be systemically important and it's not supposed to need bailing out. Maybe we'll find out how true that is in practice.
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Iceland let it's banks default, and is now doing rather well.
In fact, bank failure and then having the government only guarantee ~$50k of funds per person is a good way to hand wealth to the people and take it from corporations and the super wealthy.