If so, then $700 billion is a cheap price to pay. Seriously.
Politics in the Zeros
"A republic, if you can keep it." Defeat MAGA
Politics in the Zeros
"A republic, if you can keep it." Defeat MAGA
I am sitting here listening to the hearing on this and all I keep hearing is “think about this from the American taxpayer who is already on the hook”… BS
The only people already on the hook are the one’s that own these banks.
The Europeans are having the same problem and their answer? Let the banks get through it on their own. If that doesn’t clue everyone into how much of a fallacy this whole issue is, I don’t know what will?
Rush into the Iraq war…
fear fear fear!
Rush into fixing (PRIVATIZE IT, DAMNIT!) social security…
fear fear fear!
Banking disaster? Only if you own one of these failed banks… I am not buying this “bush reality” – not even a little bit. It all looks like a massive transfer of wealth from the poor to the rich for no other purpose than to support their failure at our expense.
The fear of a looming recession? We are in it whether or not these banks fail and it is going to get worse whether these banks fail or not.
Alf Young of the Glasgow Herald puts it rather well;
http://www.theherald.co.uk/business/news/display.var.2450887.0.No_takers_over_here_if_they_start_touting_cash_for_trash.php
There is a major, big deal crisis now. But the government’s plan, complete with dictatorial powers, no oversight, able to ignore law while paying high prices for toxic glop is wrong.
It’s not so much if banks fall, but rather they fall in a controlled manner so they don’t start a chain reaction that craters other institutions.
Wait: the emerging mega-banks squeezed community banks and other small instiututions hard, just as mega-corporations squeeze small businesses out of the market. It looks to me like this could be the opportunity of a lifetime! If the megabanks fail, there’s a vacuum that needs filling– and it will be filled. Sure, in some cases it’ll get filled by the Friendly Neighborhood Loan Shark. But the opportunities for entrepreneurs for small banks and other financial ventures would also increase logarithmically.
Bernanke’s warning that the economy would grind to a halt without credit doesn’t frighten me, either: I’ve been doing business on a cash-and-carry basis for over a decade.
They created their own mess. Let’em fail!
(Besides, if things get really bad, I’ve got 5,000 rounds of 7.62×39– a currency that won’t lose its value in a meltdown.)
A few nationwide banks will survive and prosper, getting larger. BofA, Wells Fargo, JPMorgan, Goldman.
Regional banks probably will become “lunch” for larger institutions
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8coHR7jo29w
Very small banks might do ok, esp. if they are seriously solvent. You mentioned to me once that your little hometown bank didn’t do wacky mortgages. Good.
And as a friendly warning to potential evildoers:
Don’t even think of doing a home invasion in rural Utah.