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Should we have bailed out the banks?

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We have witnessed for the first time since the Great Depression a “run” on a bank in Great Britain. The financial system in Iceland actually collapsed causing the government of Iceland to go bankrupt. The collapse of Northern Rock in England and the collapse of Iceland’s financial system showed the extent of the financial crisis. Should the U.S. government have bailed out the private brokerage firms, insurers, and commercial banks in the United States to prevent a collapse of the financial system here in the U.S.? Is it wise for global economies to be interconnected if such an event as the financial crisis can cause such a global economic collapse? the text book we used for class is :Colander, D. C. (2013). Macroeconomics (10th ed.). New York: McGraw Hill Irwin. ISBN: 978-1-259-66304-8

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