Vikram A Punathambekar wrote:
but letting the banks fail is going to hurt many more than just their shareholders and employees.
Not all banks are affected. Not all banks took part in the crazy selling and buying of debt. In the UK HBOS and NorthernRock were the two worst ones. Other banks, notably HSBC, a massive international group, has been almost unaffected because their management knew these credit products were bad and didnt buy into them. Let the few bad banks fold. If those savers loose their cash then so what? OK, its tough, perhaps the govt would do beter to pay them directly, but to fund a business that has been incompetently managed by taxpayers money?
Morality is indistinguishable from social proscription