Originally Posted by russianrocket
In case you missed it, the government forced banks to give out those risky loans. So, as I've said before, it always leads back to the governments incompetence forcing business to do something they don't want to
I agree. This is something the OWS protestors can sympathize with as well, I'm sure. Bad government policy that forces risky lending causes market bubbles, which end up hurting the middle class most when they burst.
Originally Posted by Acting Like Godot
In case you didn't realize:
(1) many banks did not receive any bailout at all and have already died (Lehman Brothers and Bear Stearns being two prominent examples, but certainly not the only examples)
That's good, they should fail for making such poor decisions. Unfortunately, many failing banks were bought out by the big banks that received bailout money, and now we have a very small number of still irresponsible banks that the government claims are "too big to fail".
(2) Basel 3 has already been rolled out, and will take effect by 1st January 2013, so how to act irresponsibly?
Basel III is like putting a bandaid on a gunshot wound. It is a marginal increase in the amount of capital banks are required to hold, but that isn't going to prevent poor lending decisions.