Posted: 2/23/2009 2:15:00 PM EDT
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Help me out here. Lindsey Graham said "if we are going to give Citi 40 billion and its market cap is only 11.6 billion, why don't we just buy it?
Makes sense to me if the govt wants to nationalize the bank. Tells me the govt is not a very savvy investor. For that matter, the govt could probably buy lots of these companies at these low stock prices. ?????? |
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I am not for nationalizing the banks. If you fail, you go bankrupt. BUT if the gummint insists on propping them up by buying the bank, do it smart.
Fire all the current management, hire some new managers who will get stock options ONLY if they perform. Then when it is back on its feet, sell it back to Wall Street. |
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I got a better idea. Lets give them $0 and whatever happens happens. I agree, Most all of the local banks and credit unions around me seem to be doing fine, they are advertising they have money to loan and every time i go in my bank they are pushing mastercards and asking if i need a loan for anything. The banks who are in trouble were running themselves like they were Vegas, let them go under. |
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I got a better idea. Lets give them $0 and whatever happens happens. I agree, Most all of the local banks and credit unions around me seem to be doing fine, they are advertising they have money to loan and every time i go in my bank they are pushing mastercards and asking if i need a loan for anything. The banks who are in trouble were running themselves like they were Vegas, let them go under. The little guy banks are not the ones that create & maintain the money supply... Further bank failures will increase deflation... Not good... |
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Foxnews has a segment on with talking points on nationalizing the banks. The big word apparently is "liquidation". How does a bank liquidate toxic assets? Auction them off to the highest bidder, usually.... There is always a 'bottom feeder' level of the market, that is willing to pay $0.01 on the dollar for 'bad' loans, under the premise that some will, statistically, pay off... |
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I got a better idea. Lets give them $0 and whatever happens happens. I agree, Most all of the local banks and credit unions around me seem to be doing fine, they are advertising they have money to loan and every time i go in my bank they are pushing mastercards and asking if i need a loan for anything. The banks who are in trouble were running themselves like they were Vegas, let them go under. The little guy banks are not the ones that create & maintain the money supply... Further bank failures will increase deflation... Not good... So in this case, you believe the free market shouldn't be allowed to operate? |
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I am not for nationalizing the banks. If you fail, you go bankrupt. BUT if the gummint insists on propping them up by buying the bank, do it smart. Fire all the current management, hire some new managers who will get stock options ONLY if they perform. Then when it is back on its feet, sell it back to Wall Street. Ummm, trust the government to run a bank? Ummmmm, geez I think I detect a problem or two. All based on one thing. Beauracracy. No beauracrat even one hired to work at a bank is gonna work himself out of a job. All those tellers are now .gov employees. Which means the manager ain't gonna be working himself out of a job. He is going to be building his little empire. Trying to get more people to do more of his/her job. Making themselves indispensible. Trade stock in a bank (that could fold 6 months later due to having to compete as a business against government banks)for a guaranteed paycheck, medical and a pension after 20 years? Not happening. Secondly, what about the government makes you think they could run a bank or would be willing to let someone competent do so? The ATF? Our wonderful immigration policy? The IRS (ok they could squeze a dime out of a nickle BUT would they give up all that power?). Not such a good idea. |
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I got a better idea. Lets give them $0 and whatever happens happens. I agree, Most all of the local banks and credit unions around me seem to be doing fine, they are advertising they have money to loan and every time i go in my bank they are pushing mastercards and asking if i need a loan for anything. The banks who are in trouble were running themselves like they were Vegas, let them go under. The little guy banks are not the ones that create & maintain the money supply... Further bank failures will increase deflation... Not good... So in this case, you believe the free market shouldn't be allowed to operate? Sounds that way to me. Of course he has been steadfastly in favor of TARP since day one. Never mind that it hasn't done a damn thing to save these moronic banks, and the repercussions he was fear mongering about are happening anyway. The responsible thing to do in a capitalistic economy is to let the morons who make bad decisions reap the consequences, other more prudent companies will pick up the pieces, no trillions of dollars of taxpayer money necessary. |
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I got a better idea. Lets give them $0 and whatever happens happens. I agree, Most all of the local banks and credit unions around me seem to be doing fine, they are advertising they have money to loan and every time i go in my bank they are pushing mastercards and asking if i need a loan for anything. The banks who are in trouble were running themselves like they were Vegas, let them go under. The little guy banks are not the ones that create & maintain the money supply... Further bank failures will increase deflation... Not good... So in this case, you believe the free market shouldn't be allowed to operate? In this case, see my TARP thread... Societal survival & a 'soft landing' for the masses trumps principle... An RTC style entity, loans, or purchase of new-series NON-VOTING equity with no strings attached are appropriate.... I do NOT support nationalization. Not now, Not ever... |
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I got a better idea. Lets give them $0 and whatever happens happens. I agree, Most all of the local banks and credit unions around me seem to be doing fine, they are advertising they have money to loan and every time i go in my bank they are pushing mastercards and asking if i need a loan for anything. The banks who are in trouble were running themselves like they were Vegas, let them go under. The little guy banks are not the ones that create & maintain the money supply... Further bank failures will increase deflation... Not good... So in this case, you believe the free market shouldn't be allowed to operate? Sounds that way to me. Of course he has been steadfastly in favor of TARP since day one. Never mind that it hasn't done a damn thing to save these moronic banks, and the repercussions he was fear mongering about are happening anyway. The responsible thing to do in a capitalistic economy is to let the morons who make bad decisions reap the consequences, other more prudent companies will pick up the pieces, no trillions of dollars of taxpayer money necessary. I remain concerned about the ability of the US to make it through a depression (which is not what is happening now - although it could depending on how the Dems handle things) intact... Unlike the deconstructionists who want to see it all fail so they can live out Mad Max fantasies, my first priority is the preservation of America as close to the way it has been for W's term as possible... Allowing a full meltdown is, to me, a case of 'what good are principles if you're dead' sort of scenario - it doesn't matter weather you feel you did the right thing, game over is still game over... |
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I remain concerned about the ability of the US to make it through a depression (which is not what is happening now - although it could depending on how the Dems handle things) intact... Unlike the deconstructionists who want to see it all fail so they can live out Mad Max fantasies, my first priority is the preservation of America as close to the way it has been for W's term as possible... Allowing a full meltdown is, to me, a case of 'what good are principles if you're dead' sort of scenario - it doesn't matter weather you feel you did the right thing, game over is still game over... Cap and Trade, Card Check and Socialized Medicine will kill or drive out the remaining industrial base in the us. Taxes on the wealth(y) will drive out the capital. The Dems know this but don't care. They won! |
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I remain concerned about the ability of the US to make it through a depression (which is not what is happening now - although it could depending on how the Dems handle things) intact... Unlike the deconstructionists who want to see it all fail so they can live out Mad Max fantasies, my first priority is the preservation of America as close to the way it has been for W's term as possible... Allowing a full meltdown is, to me, a case of 'what good are principles if you're dead' sort of scenario - it doesn't matter weather you feel you did the right thing, game over is still game over... Cap and Trade, Card Check and Socialized Medicine will kill or drive out the remaining industrial base in the us. Taxes on the wealth(y) will drive out the capital. The Dems know this but don't care. They won! They won, for now... Round II starts next year.... 94! 94! 94! Fortunately, there is no way they will get all of the above done before the election in 2010.... And there is the possibility that Norm Coleman wins his suit & the GOP has another seat... |