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What SirMoby says is so true.
Banks are going under because "they are being written down" and they are being "downgraded". Being downgraded makes it impossible for them to borrow money against their assets (since the assets have been lowered in value) to get cash they need to pay immediate expenses so they go under. Regarding Washington Mutual it happened exactly like that "On Wednesday, it suffered a ratings downgrade by Standard & Poor's that put it in danger of collapse". The next day it's gone.
Regarding Jim's question. No I do not think they should do a bailout! God only knows where the fuck that money will end up. How will they monitor the money? WHere will it spent? Who authorizes the money? Bad idea all around I think. If anything set the money aside to do what they've done in recent weeks. Step in with cash to take over companies and assets.
And the taxpayers need not worry. IMO the money will not be taken from taxpayers exactly. Are they not using taxpayers money and that money will not be used elsewhere (for school, roads or where ever) until (if) it is paid back. THat part I'd like to know about for sure.
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