Government should save failing banks, do you agree?
Last year, a nightmare happened. Financial crisis happened. It affects the economy of the whole. The biggest bank in America declared bankruptcy. The global market got a decline period. To save the market, the US government save the failing banks by giving the banks millions of dollars which has already become a heated issue. Hence, we hold the position that government should save banks.
------Wangweibin
Furthermore, bank industry is a symbol of a country. As national economic courage, bank industry definitely leads local economy. Hence, if these optimus collapse, it only bring the country discourage and depression. Though some believe that it is banks themselves that bring them bankrupt because of the greed and lust, government should save banks, concerning the potential effect on the increasing of various industries. Buffet said that, stability and strength of banks are cardiac to not only individuals but also other factories and financial corporations. Therefore, there is no doubt that government should save the banks and make them run stably.
-------Fanxinyu
Bank plays an important role in people’s life. Government should save falling banks for the sake of its people. Bank’s situation can influence people’s money and moods. It is undeniable that almost everyone has a bank account. If we didn’t have banks where would people save their money? It’s the only place to save money, unless it’s an amount which one can put in the locker in his/her home. Of course, people can’t leave the money at home and increase the chances of it getting robbed. If banks are falling, people will lose money. Just like America, people lose a lot of money in the recession. Without any help, people will lose much money, even all. Government should take this responsibility to save its people. Banks can also influence people’s mood. If banks are falling, people will be negative and disappointed for the future. In a long run, the whole nation will face a series of problems. If our government does nothing for the falling banks, citizens will lose courage to overcome these economic problems. The whole country may get into trouble. October 24, 1929, the US suffered the greatest economic crisis. March 4, 1933, Franklin Delano Roosevelt became the thirty-second President of the United States. He used a series of policies to save the economy. It was reform, recovery and relief. In this case, we can see that it is crucial for government to save the falling banks.
----------Ningchao
Critics against my position may say that the market show live on its own. So they think that it is unfair for the market. However things are not that easy. Banks are financial institutions licensed by governments. In other words they are playing a supporter’s role in the economy. Thus, one bank fail may occur many people and companies. For example, Lehman Brothers causes many companies like real estate companies to bankrupt, because Lehman lend much money to people who invest these companies. These real estate companies cannot get any money as soon as Lehman failed. Therefore, saving failing is fair for most companies. On the other hand, banks are related, because different banks have different functions. Therefore, would suffer a lot if the government refused to save large banks. For example, if people’s bank of China which is the centre bank of China failed, other banks in china could hardly work. As a result, government should safe banks to stabilize the economy and prevent large scale bankrupts.
--------ZhangHaoqiang
Banks really play an important role in the economy. The failing of banks will leave the economy mess and out of order. Meanwhile, it will also delay the revilement of economy. Obviously, the action that the government takes is really acceptable. In the end, we believe that government should save failing banks.
------Wangweibin
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Government should save failing banks, do you agree?
ReplyDeleteLast year, a nightmare happened. A financial crisis happened. It affected the economy of the whole world. The biggest banks in America declared themselves bankrupt. The global markets went into a decline. To save the market, the US government had to save failing banks by giving the banks millions of dollars; such a move was unavoidable. Hence, we hold the position that government should save banks.
The banking industry is often a symbol of the economic health of a country. If the government does nothing for the falling banks, citizens will lose faith in the government's ability to deal with economic problems. If banks are falling, potential investors would lose confidence in the financial future of a country. If the banking industry should collapse, there would be a general discouragement and depression within the country as it slides into recession. In a long run, the whole nation will face a host of financial problems. For example, if People’s Bank of China which is the central bank of China failed, other banks in China would fall. The government would safeguard the bank in order to stabilize the economy and maintain economic growth.
Though some believe that banks bring these problems on themselves because of the greed and lust, government should save banks for the sake of its people. Almost everyone has a bank account. If we did not have banks, where would people save their money? Governments have a responsibility to protect its people. For example on October 24, 1929, the US suffered one of the greatest economic crisis in history. On March 4, 1933, Franklin Delano Roosevelt became the thirty-second President of the United States. He used a series of policies to save the economy. The most significant of which was to secure the banking industry. It involved reform, recovery and relief. He went down in history as a president who cared for the people. 1 (Reference?)
Critics against my position may say that the market should make adjustments on its own. However, this view is simplistic and things are not that easy. Banks are financial institutions licensed by governments. In other words they play a supportive role in the economy. Thus, when banks fail, whole industries may fail too. For example, the downfall of Lehman Brothers caused many companies like real estate companies to go bankrupt as well. This is because Lehman Brothers lent to people who invested these companies. Other industries in turn are affected. (Not sue but I think it is the other way round....check the facts)
In conclusion, there is no doubt that government should save banks and maintain their stability. Banks really play an important role in the economy. The failing banks will leave the economy in a mess. In the words of Warren Buffet, “Stability and strength of banks are cardiac to not only individuals but also other factories and financial corporations.” 2. (Reference?) Surely governments cannot allow this to happen.