because a) Matthew Wright is an idiot andb) because if they allowed NR to go bankrupt then other banks would become the target of speculation and continuing runs, other smaller banks would then find themselves running out of money rapidly and the larger ones would end up shoring them up. this would lead to an inevitable loss of trust in banking here and in the US, which would in turn lead to less and less money being put into them, slowing the already sluggish econmy and causing mass recession.
A simple domino effect form one bank going under would put all other banking insitutions in trouble and the world would probably end.
Or similar.
(A simple domino effect form one bank going under would put all other banking insitutions in trouble and the world would probably end.
Or similar.
new_matt,
Thu 28 Feb 2008, 11:13,
archived)
And of course propping up a bank that fell apart because of directorial incompetenceIs not at all giving out the wrong message to other city suits:
"Don't worry if you waste tonnes of money, you'll get a golden handshake and a big payout from the government"
("Don't worry if you waste tonnes of money, you'll get a golden handshake and a big payout from the government"
chenobble rocking his explorer beard on,
Thu 28 Feb 2008, 11:20,
archived)
that's a side issue of coursebut if NR goes bankrupt then all those people with savings and mortgages also go bankrupt and that fucks up an awful lot of people. shutting post offices just annoys old people.
( new_matt,
Thu 28 Feb 2008, 11:22,
archived)
That sounds like economicsyou're not seriously asuggesting that the government made a decision based on economic factors, rather than protecting their image?
(
Joe Scaramanga with a G-double-O-D vibration,
Thu 28 Feb 2008, 11:22,
archived)