Amazon.com Widgets

Germany will not bail out any lenders. Do countries have an obligation to bail out financial firms?

  • Yes, they have.

    Countries have an obligation to bail out financial firms. Therefore i believe that Germany will bail out any lenders. Every country strives to build its reputation and also support their country's resources. If every country is obliged to this, then Germany is not an exception. They just have to do it.

  • Yes, I think so.

    The French and Germans were terrified about the solvency of their leading banks. They were not in the slightest interested in Greek banks (other than the impact on the rest of the eurozone) and least of all in the Greek people and Greek economy. The arrangements ultimately concluded meant that the bailout of German and French banks was done in a very underhand way, to avoid political criticism from their own electorates, and there was in effect no haircut of the debt other than for Greek state institutions owed money by the Greek state.

  • Hell naa dude

    In order for governments to "bail out" failing corporations, they must first STEAL that money from private citizens. Stealing is THEFT. THEFT is immoral, unjust, unethical and down right CRIMINAL! Therefore, government should never be obligated to bail out any business for any reason. A bail out means citizens have been victimized. A government that can victimize their citizens means those citizens are living under oppression with tyranny.

  • Everyone is responsible for his or her poor decisions.

    Bailing out businesses means the removal of risk for all of these corporations. If you make poor decisions, you have to face the consequences of those decisions.
    By removing the consequences for poor decisions, the government is creating an incentive for people to make more high risk choices than they would otherwise. This leads to even more negative consequences that the tax payer has to fund, which in turn leads to even riskier behavior.
    It quickly becomes an unbreakable cycle in which inevitably leads to a market collapse.

    Posted by: Laca
  • Germany does not have an obligation to bail out lenders

    Germany does not have an obligation, moral, legal, or financial, to bail out financial firms. Doing so creates a moral hazard. This incentivizes the executives of financial companies to take undue risks since they know the company will be bailed out. The government can create a process so the a bankruptcy would not disrupt the entire economy.

  • In the end, it is better.

    It is better to let the economy rise and fall. If a business is going to fail, let it fail. Business needs to know that if they don't have sound business practices, that their business will crumble. It damages the economy to prop up inefficient businesses. Germany is doing what is best in the long run.


Leave a comment...
(Maximum 900 words)
No comments yet.