alt Hacker NewsA lot of comments read this is as fluff. And in some ways it is.
However, looking at the other side, I think what this might do is add some barrier or consideration when a bailout is considered.
The last time we did large scale bailouts (TARP[0], in 2008), It was rushed through and ratified in around two weeks following the sudden collapse of Lehman.
Any measures we can take to ensure that we don't fall into a situation where there is only one choice is sensible.
[0] https://home.treasury.gov/data/troubled-assets-relief-progra...
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> what this might do is add some barrier or consideration when a bailout is considered
It’s a resolution. Pure puffery. A serious effort would have involved floating a bill.
In a similar scenario though I would imagine there would likely be a similar level of urgency to act quickly that would likely steamroll or sidestep in many ways whatever barriers or considerations such a resolution might enact.
Maybe I'm just jaded but this just seems to be how the world works.
> Any measures we can take to ensure that we don't fall into a situation where there is only one choice is sensible.
Amen. Prepare for a disaster tomorrow by planning for it today. The specific implementation might be mediocre, but we should be pushing for more, especially vis-a-vis pushing for anyone in the company who knowingly was involved in fraud to go to prison.
Treasury's summary is missing important pieces of the story. TARP failed its first vote in Congress, with opponents rightly pointing out that it was being rushed through and alternatives ought to be considered. But five days later, no concrete alternative had arisen, and it was clear to at least 60 reps who flipped their vote that something had to be done or the financial system was going to collapse.
2008 was rushed, but at least the people rushing it were competent.
What would happen if the bubble burst tomorrow, with the clowns sitting at the helm of the USA?
I'm not sure your president would choose to save the American people rather than bailing our his CEO friends. There's money to be made as backshish if Trump bails Altman and Altman gives back a %age of this to his helper..
It’s worth noting, though, that TARP succeeded in saving the US economy, which was much less affected by the crisis, and turned a profit for the US government.
There is really no comparison. Frozen credit markets would have dragged the global economy into depression. A crash in tech stocks will just cause investors to lose some wealth. Nobody depends on AI for core operations. Not yet at least.
Also, we did a long-term fix for a 2007-style crisis already with Dodd-Frank. Government can now invoke "orderly liquidation" before a crisis happens. When commercial banks failed a few years ago, FDIC solved it in a matter of weeks with no outlay of money from Congress.