Should the US "save" Lehman Brothers and Washington Mutual?

Should the US "save" Lehman Brothers and Washington Mutual?
Sep 12, 2008 01:47
ZOEY Points: Join Date: Nov 29, 2004 Status: offline	The US government has nationalized Fannie Mae and Freddie Mac. in order to save the housing finance system. After Fannie Mae and Freddie Mac, Lehman Brothers and Washington Mutual might be the next that the government will help out. This is what the market views. However, some people don't agree with this plan. There are many banks that are going through the tough times. If the authorities save Lehman Brothers and Washington Mutual, how do they deal with other banks? Can the authorities save them one by one? Impossible! Now the USA government should step out and avoid doing such rescues. These are their views. What do you think of their views? Are they reasonable?

Sep 12, 2008 01:47

ZOEY
Points:
Join Date: Nov 29, 2004
Status: offline

The US government has nationalized Fannie Mae and Freddie Mac. in order to save the housing finance system. After Fannie Mae and Freddie Mac, Lehman Brothers and Washington Mutual might be the next that the government will help out. This is what the market views.

However, some people don't agree with this plan. There are many banks that are going through the tough times. If the authorities save Lehman Brothers and Washington Mutual, how do they deal with other banks? Can the authorities save them one by one? Impossible! Now the USA government should step out and avoid doing such rescues. These are their views.

What do you think of their views? Are they reasonable?

Sep 13, 2008 20:22	#1
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	Bankrupcy, liquidation and disolvation is business usual. If US economy was running under the impression that gov will bail out to help debtors, US would not be the head of top-8.

Sep 16, 2008 17:19	#2
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	Lehman Brother's gone.

Sep 18, 2008 22:57	#3
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	Lehman Brother's gone. Yes. That's why some people oppose the government to save those financial companies. Saving one company can't change the current situation at all. Will US try to save all financial companies by nationalization? That's impossible.

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