Prager University: Should Government Bail Out Big Banks?

"We teach what isn't taught." - Dennis Prager

This is such a huge topic, one which is misunderstood my most.  The simple reality is no one wants to see big banks (or big businesses) go bankrupt, because doing so causes major pain to many people...The other simple reality is big banks which aren't allowed to properly go through bankruptcy instead of being propped up by the government at the expense of the taxpayer - often propped up only to see them continue their poor practices which got them in trouble in the first place - are most likely just kicking the can to a future crisis.

These banks which are being propped up by the government are a version of Greece - which is being propped up by various financial groups in Europe, but it continues to fall further and further in the hole...Amazingly, some American banks are much bigger than Greece, and their dependence on government makes them much more dangerous to the American people than Greece could ever be to Europe.  They are actually so big they are a threat to the entire world economy.

The real unfortunate thing about the 2008 bank bail outs is the banks which are "to big to fail' have only gotten bigger...Bigger and more dangerous when the next crisis comes.  And have no doubt, it will come.

This semester of Prager University is presented by:  Nicole Gelinas

"The problem (with the 2008 financial crisis) was not that banks had been too free, but that they had grown too dependent on government over the last few decades." - N.G.

"How do we bring sanity back to the financial industry?...The solution is that the government must stop guaranteeing the big bank's losses." - N.G.