Because these decision makers themselves were, or still are, people in the financial industry. In the inside job, they are the main targets of criticism, and their representatives are former Treasury Secretary Paulson, current Treasury Secretary Geithner, and Federal Reserve Chairman Bernanke. However, because of the shift in positions (especially Paulson's), policymakers must be held accountable for the health of the economy (rather than the board of directors of their companies), and to formulate policies by law. This means that without precedent and regulatory support for their policies, they must obtain legislative approval from Congress (the legislative branch of the U.S. government).
2008 is the year of the presidential election. It's really a rainy night. The ruling Republican Party is also hesitant in the legislative process and has gone awry.
Too big to fail is too accurate. For these big banks, the government cannot interfere with their business strategies. Get cheap government funds, but do not lend to SMEs, but take the opportunity to clean up small banks. If the government doesn't rescue them, the financial markets collapse and everyone is out of luck. What a dilemma!
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