RE: [OPE] US Pledges Top $7.7 Trillion to Financial Institutions

Date: Thu Nov 27 2008 - 11:05:39 EST

> Even then, as Angela Merkel points out, the supply of additional cheap money to the
> financial institutions and investors cannot guarantee that the same sort of financial problems
> will not occur again in five years time.
Hi Jurriaan:
Five years time or less. It's not at all clear whether even with the bailouts the troubled
firms in the financial sector will be able to avoid bankruptcy in the next year or two.
Part of the debate is a kind of "do you throw good money after bad?" discourse: i.e.
what guarantee for the state is there that if they give increasing funds to these
institutions that they won't still go bankrupt anyway or keep coming back asking for more?
The have become, perhaps, in Tony T's words, "too big too save".
In solidarity, Jerry

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Received on Thu Nov 27 11:10:33 2008

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