Bank Quote by Jerome Powell
“Bailouts may have been more tolerable in the early 1990s when they were rare and their use for a failing bank was uncertain. That is no longer the case.”
About This Quote
Source Speech: Monetary Policy Address, Jerome Powell, 2023
Early‑1990s bailouts were rare, making them more tolerable; now frequent bailouts are less acceptable.
In simple terms: Frequent bailouts erode tolerance.
Limit reliance on bailouts.
Themes
Mood
Type
When to use this quote
- banking crises
- public debt
- regulatory reform
Key Concepts
Questions to Reflect On
- Should bailouts be a last resort?
- What alternatives exist for failing banks?
Political pressure may force bailouts despite risks.