Quote:
Originally Posted by cykoe6
He said that because it is true. Bank failures are a natural result of a real estate market bubble collapse. They are not indicative of structural problem with the economy in this instance. Many stocks are up today as a result of oil falling under $100. Obviously it is a tough day for the financial sector and Wall Street but that does not mean a disaster on Main Street.
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If the fundamentals are so strong, why does the government need to keep coming in and bailing out companies? I mean if those fundamentals are strong, Fannie and Freddie should have been able to die like every other company.
There is a structural problem with the economy. Some of these companies get so large that they can take down the entire economy with it.