Executive Cap Not Just For Bailed Out Companies?

[Ravi]

we can. it's called chapter 11 bankruptcy. that's how economies should operate. mismanaged companies with shit management go bankrupt, and new management comes in and run things right. look at all the airlines and that's the model we should have followed.

We are talking about banks, correct? Imagine for a minute what would happen if a bank declared bankruptcy. Everyone would pull their money out and with the economy the way it is this could spark a chain reaction that would make the Depression look like a picnic.

well, there is something called the FDIC to prevent that... I'd rather see bank insurance be handled by the private industry, like car insurance, but ultimately the FDIC does limit bank runs.

It doesn't prevent it. This is basically what happened to Washington Mutual. People started pulling money out of it and it had to be taken over...the fed can only cover so many loses.