If the government didn't bailout the banks, who would have taken on the bad loans?Submitted by libertybrewcity on Mon, 11/16/2009 - 01:10
This weekend I got in to a discussion with a very liberal friend who is starting to swing my way on some issues. He supported the bank bailouts because he believes without them most banks would have failed. I told him that that is how the free market works. Where I got stuck was when he said then who take on all the bad load? The remaining banks were too few and too small to handle it. I am not an expert in that field, can someone explain it?