Systemic Risk...

Yesterday, I was discussing about US banks bailout or Capital assistance program and Free Market with some of my colleagues.

Every body was skeptical about the programs to bail out Wall Street Banks. But I was explaining to them about 'Systemic Risk' if we allow these banks to fail or go bankrupt.

At good times, if a large bank goes bankrupt, Other bank can go and take over the bank and run its operations. But who will buy these banks at this point with losses in billions. We can all talk about Free market and its advantage, but what is required now is government intervention to keep the "World" banking system afloat.

Check out the Systemic Risk Wiki below....

http://en.wikipedia.org/wiki/Systemic_risk