So they find a way to save them. And then, they're stuck with this very awkward thing. They told us, for the record, they couldn't bail out Lehman Brothers, because Lehman Brothers didn't have enough collateral to make a loan.The Federal Reserve Law says they have to have collateral.
but failed to recognize that the banks had already exceeded the GDP, where everything we produce in Iceland 10 times, so we would never be able to bail out those banks. Now, as you see here, it's a nice-- here at Google, the first thing you do is to plot your data-- and here you see Kaupthing five-year bond issues.
You've got a financial crisis. We decided to bail out the system rather than let it fail, because it was too big to fail. The costs of doing so were basically a 30% drop in tax revenue across the OECD countries, because the financial sector had become so big, particularly in the
So Ben Bernanke went on 60 minutes to tell people, "I didn't want to bail out Wall Street. I wanted to bail out Main Street. But the only way to bail out Main Street was to bail out Wall Street.” It's kind of a hard argument to make. Or as Barney Frank -- who's the wonderfully clever Chairman of the House Financial Services Committee, who is the source of almost all great one-liners on everything economic said
It did crash. It did collapse. Governments had to come in and bail out the companies, the banks. Governments had to come in and prop up the system.
That's Donaldson at the bottom. And that's a man from the press in the middle. And up there is, I think, a different reporter. And what happened was a storm kicked up and Donaldson said, "We gotta bail out . Everyone get by the basket and hang on and then we'll all jump at the same time. Well, the guy--. One of the guys didn't hear him properly. And so, Donaldson and this other guy, Ford, they're dangling and they jump out and the balloon shoots upward because
keep relying on the Chinese government to buy U.S. debt that, because we're running deficits, because we're spending more than our means, I'm not sure that there's anybody in the future that's going to step up and bail out America. That's a good lesson to keep in mind, too, if you will. So, with that, I just want to say thanks for being a great audience and I'll be glad to duck or answer any questions if I can.
Her name was Valentina Tereshkova and her qualification for making that space flight is that she was the best parachutist in her club. Because back in those days, they had to bail out at 10,000 feet down on their way down otherwise they're going to crash into the Earth in that little spacecraft they had. Anyway, we fly everything on board in this country. Anything we do in space is actually flown by hand on board or flown by an on board
had to restart an engine at 30,000 ft the resulting Sonic Boom shattered a chimney inside a factory on the ground and two men working there were crushed to death and if a pilot had to bail out as Collins had in 1963 the aircraft needed significant
vision and and what I want to ask is even Saks Fifth Avenue today is asking to be bailed out who will bail out imagination and thought who will prevent our libraries and bookstores from
The negative comparisons then lead you towards confiding in that person, So his advice was have high expectations and expect to be treated well, and bail out a relationship
had turned his back on an association agreement with the European Union. And instead, decided to ink a deal with Russia to bail out Ukraine's disaster of an economy. These people who came out to the streets demanded his ouster.
way who married him understood what he was getting into because he started being involved in these fights with the Soviet Union in Afghanistan against the Soviets when he was 22, 23. He basically said to his wives, "If you want to bail out , you can." In Sudan, one of his wives said to him, essentially, "I thought I was marrying the son of a billionaire, and now we're living in total poverty in Khartoum, without air conditioning. I'm going back to Saudi Arabia, thank you." Which is what she did. There was no contest. By Taliban standards,
that having that second language is going to help them um tremendously and that the Chinese economy will be so huge by that point that um that knowing that will really benefit them don't expect a government bail out bail yourself out um just get in there and take control of your own
contraction and there's a bust rather than allowing the market to function uh Hoover decided that he was going to intervene that he knew better. He was going to bail out companies. He was going to stimulate the economy. That might not have been the words they used, but it was the same concepts. He wasn't going to let the market reset prices.
People in America think Wall Street got bailed out and they didn't. So Ben Bernanke went on 60 minutes to tell people, "I didn't want to bail out Wall Street. I wanted to bail out Main Street. But the only way to bail out Main Street was to bail out Wall Street.” It's kind of a hard argument to make.
It may well be the case that the federal government swoops in with a lot of money that they wouldn't have otherwise or didn't expect to um allocate as they have, for instance, to bail out the American farmers from um you know, a lot of impacts from tariffs to to um weather events over the last couple of years. We'll see. But, the way
And I told him, I said, OK, you're going to have to catch a front edge and bail out , which if you do this on a snowboard, there's no--
So I put, "Next meeting." And they said, "Dick, we need to talk about the people who are going to have to bail out ."
And I wrote, "What color is your parachute?" Because I was playing with the words, "bail out ," and I thought, it's either a leaky rowboat
into schools and to give you a perfect example of how awful the system is, a year ago January, a year ago this month, for some reason Tyson decided they needed a bail out , so the USDA
They let Lehman Brothers go bankrupt. They say that they expect people to be upset, but not too bad. After all, everybody knew Lehman was in trouble. To some extent, they've been beaten up for saving Bear Stearns, and they talk about, "It's time to teach Wall Street a lesson that the government is not going to bail out every big institution.” They expect ripples; they get a tsunami.
David Wessel: Sure. Q Yeah. So we therefore created basically -- or continue to create -- moral hazard, right? And so, instead of asking ourselves, How do we convince basically these people to say, "Okay, take our money to bail out these players in the financial system when they fail.” Shouldn't we be asking, Why don't they have the incentive? Why doesn't it come back to them?