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LEARN MORE ABOUT: Bank Failures
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In a surprising turn of events, two Republican presidential candidates, John Kasich and Ted Cruz, found themselves at odds over the issue of bank bailouts. This clash has sparked further debate within the party and has brought the issue of economic policies to the forefront of the campaign.
The disagreement between Kasich and Cruz began during a recent GOP debate when the topic of bank bailouts was brought up. Kasich, the governor of Ohio, defended his support for the bailouts during the financial crisis of 2008. He argued that they were necessary to prevent a complete collapse of the economy and to protect the jobs of everyday Americans. Kasich’s position was clear – sometimes intervention is needed to stabilize the economy.
On the other hand, Cruz, the senator from Texas, vehemently disagreed with Kasich’s stance. Cruz accused Kasich of supporting big banks and Wall Street elites at the expense of taxpayers. He argued that bailouts only encourage reckless behavior and that the government should not step in to save failing businesses.
This clash between Kasich and Cruz highlights a fundamental divide within the Republican Party. It exposes the debate between those who believe in limited government intervention, like Cruz, and those who advocate for a more active government role, like Kasich. The bank bailout issue serves as a microcosm of this larger ideological dispute.
Those who criticize Kasich argue that bailouts create moral hazards. By bailing out failing businesses, the government essentially rewards risky behavior and encourages businesses to take unnecessary risks knowing that they will be saved if they fail. Critics believe that this sends the wrong message to the private sector and undermines free-market principles.
However, Kasich’s supporters argue that the financial crisis was an exceptional circumstance that required immediate action. They argue that allowing large financial institutions to collapse would have had devastating consequences for the entire economy, leading to mass job losses and a severe recession. Kasich’s position is rooted in a belief that sometimes government intervention is necessary to protect the well-being of the American people.
This clash brings to the forefront a larger question about the role of government in the economy. Should the government step in to save failing businesses and stabilize the economy during times of crisis, or should it remain hands-off, allowing market forces to determine winners and losers?
The divide between Kasich and Cruz reflects the larger ideological struggle within the Republican Party. It raises questions about the party’s commitment to free-market principles and its stance on government intervention in the economy.
As the presidential campaign progresses, it will be interesting to see how this clash between Kasich and Cruz shapes public opinion and influences the positions of other candidates within the Republican Party. It is clear that the issue of bank bailouts has become a point of contention that will continue to be debated among conservatives in the coming months.
His lip movement at 11:00 is hilarious!!!!!!
Kasich, how many times have you stood up for our Constitutional rights like Ted Cruz? NADA!!
TEDCruz2016 #NEVERKASICH #DROPOUTKASICH
The question was asked in a wrong way. The moderator didn't said anything about FDIC insurance. Also KASICH said 'I wouldn't bailout.'
My goodness, there was so much ineptitude floating around in this segment of the debate. The only Truth spoken was by Jeb Bush(cut off from this segment), who stated that in order to stop these banks from getting bigger, the Fed has to increase capital requirements. Only problem was: it was already done this past summer, and we're beginning to see the largest banks shedding some weight.
But Kasich was completely incoherent. Among other things. he apparently forgot that depositors are FDIC insured. Cruz didn't seem to realize that attaching our currency to gold would stifle economic growth, which is why we got off the gold standard in the first place. He also thinks that people who live NEAR Washington D.C. are all rich because they're corrupt, which is lunacy. Rubio thinks that Dodd-Frank is making banks larger, which is nonsense. Bank mergers have always taken place. But the largest banks are actually getting smaller. Carson said a whole bunch of nothing about "regulations" being too big of a burden.
"Philosophy doesn't work when you run something". OMG this man is a fool, 100%.
How on earth did Kasich get this far? He's a buffoon, an anti-conceptual spaz.
Kasich is absolutely wrong. Ted Cruz presented a very strong and great position on the subject.
All of the Quantitative Easing and bailouts have only benefited the banks, financial institutions, unions and crony projects to pay back donors. By the time it's gets to the middle class and poor it has already increased inflation and it means nothing by then. Let the banks fail, miserably. Kasich is a fool and the problem. His stupid ass ideas are what causes bubbles. Besides when banks fail the depositors do not lose their money, only the crooks lose their jobs, and they should.
He said sound money
Hey, Kasich, you moron. People don't have a right to take someone else's money when theirs is about to evaporate because of lousy decisions made by the bank executive.
Kasich got boooed….LOL