Quote:
Originally Posted by taxwonk
I may be wrong, but I think if the banking system had collapsed, it would have been the super rich that would have been fucked. The Fed could have come in the day after the collapse, picked up the good pieces, pulled them together, and sold that off to someone else, subject to a lot more supervision.
I don't know too many middle class folks who were over-invested in CDOs and credit default swaps. I don't think most of them would have felt a thing. But that's easy for me to say, because it didn't happen. I acknowledge that.
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It's not the first order effects, its the shockwaves it causes. When Uncle Wayne's Hardware closes shop because it no longer line of credit and can't pay suppliers and employees, that's not going to hurt the super rich.
Those with a cushion would be fine. Those on the margins lose jobs and homes.
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