Finance, Forex and Investments

what happens if the Fed did not grant industry protection to commercial banks?

what happens to the availability of credit in economy? how does this affect interest rate?

Public Comments

1. What would have happened is those banks we bailed out would be in bankruptcy in witch they would have had to sell assets and re-staff or close.In either case there were still other banks whom had enough money to purchase such assets or pick up the slack.Interest rates are affected by many things and there is no way to judge fully what affects those banks would have had if we let them fail I can only give idea.I can tell you we bailed them out-the american people gave them as of now 350 billion-and we lowered interest rates witch affects our intake from money in banks-so we payed them money and are losing money at the same time.If these banks had failed in my opinion-we would still have our 350 billion-other banks would have bought the others assets and interest rates remained the same- On the up side with the rate as low as it is now-when lenders decide to lend again the housing market will rise because the interest rate on loans has dropped as well. making them almost buying them at closing cost.No matter how you slice the bread its still flour , yeast, and water.and its the same outlook i have here no matter witch way you look at this issue-the american people are still screwed and the rise will take awhile