Noticing the widespread issue, the Government tried to save some institutions by offering people’s money (i.e. tax money).
Blockchain 101 — only if you ‘know nothing’!
Ritesh
3.9K24

Bailing out banks is no simple matter. It creates loads of controversies, but in some case, it matters. It is true that in some cases those who caused all the tragedies go unpunished, but sometimes the govt has to bail out a bank simply to stop the dominoes effect. Let’s say one giant bank A is bankrupt due to their speculation and overconfidence in the financial market. However, not bailing them out meaning that institution/bank B, C, D, …, n , will have to declare bankruptcy as well because bank A borrow a substantial amount of their asset. It means, not bailing out bank A as a punishment would also punish every other institution who rely on them. It is easy to put all the blame on the govt, but I believe that the citizens have to be more critical as well, to such events.

Like what you read? Give littlefeet a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.