Reply #14: It will create in economic collapse

[gravity]

If you have massive bank failures, it will cause a depression which is 10x worst than a recession. It will hurt American families a whole lot more as wealth will disappear everywhere and unemployment will skyrocket. That money you saved for retirement could be all gone.

The Fed has to make tough choices about its actions because its actions have negative consequences in other areas. The problem is that a failing financial sector is much worst than inflation or possible moral hazards. The Fed takes these factors in consideration every time they make a decision, but sometimes it is the lesser of the evils.

The financial sector is in big trouble and the Fed wants them to bleed from taking too much risks, but at the same time, they don't want them to die.