• ryathal
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    1 year ago

    4 probably won’t happen. The mortgage bailouts were a bit of a special case, because the debt was rolled into securities and spread all over the place. To my knowledge there isn’t a secondary market for auto loans, so the scope is limited to individual banks.

    What may happen is the FDIC guarantees all deposits like they did with silicon valley bank, which is less bad than a full on bailout.