Stuart Varney says politicians will vote to bail out of the banks

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Stuart Varney says politicians will vote to bail out of the banks

During his My Take, Monday Varney Co. host Stuart Varney addressed recent banking fears raised by the specter of a 2008 financial crisis, arguing that Washington faced a similar bailout situation 15 years ago, and that politicians would likely vote to bail again if confronted with the same decision.

STUART VARNEY: There was an intense debate about bailing out of the banks back in 2008. We are not in a crisis at this point.

We have seen buyouts of troubled banks, and pledges of insurance for depositors. If needed, promises of big money are still to come. What if things got out of control, as they did 15 years ago?

There is a little history here. A bailout bill was presented to Congress when the slide began a few years ago.

The Opposition was intense. Why are people asking why we should bail out banksters, as they were called? The stock market dropped like a stone and the bank slide got worse when that first bill was rejected.

The politicians reversed course and voted for a full bailout. Faced with a bail or crash decision, politicians voted to bail. Bailouts are bad, but a crash is worse.

If our current bank crisis goes south, and we were faced with a bail or crash decision, the politicians would vote to bail.

It's a tough call for President Biden, because the main fault lies with the Federal ReserveFederal Reserve. They printed too much for too long, but bailout decisions are political decisions and politics demand a fix.

This is a complex situation. There are crises abroad, a debt ceiling crisis at home, and a crucial interest rate decision from the Federal ReserveFederal Reserve this week. The president and the Fed are in a hard place between a rock and a hard place.