Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Fed eyes Nordic-style nationalisation of US banks
The Telegraph ^ | 3/31/2008 | Ambrose Evans-Pritchard

Posted on 03/30/2008 9:16:48 PM PDT by bruinbirdman

click here to read article


Navigation: use the links below to view more comments.
first 1-2021-4041-54 next last

1 posted on 03/30/2008 9:16:49 PM PDT by bruinbirdman
[ Post Reply | Private Reply | View Replies]

To: bruinbirdman

Absolut Socialism.


2 posted on 03/30/2008 9:21:27 PM PDT by Unknowing (Now is the time for all good men to come to the aid of their country.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Unknowing

Damn, that’s good!


3 posted on 03/30/2008 9:22:58 PM PDT by Republic of Texas (Socialism Always Fails)
[ Post Reply | Private Reply | To 2 | View Replies]

To: bruinbirdman
"Norway ensured that shareholders of insolvent lenders received nothing and the senior management was entirely purged."

If this advocated to be in the USA, it will NEVER happen.

"Two of the country's top four banks - Christiania Bank and Fokus - were seized by force majeure. "

If those "purged" senior management were transfered with benefits to new positions...a deal could be made!

4 posted on 03/30/2008 9:37:46 PM PDT by endthematrix (He was shouting 'Allah!' but I didn't hear that. It just sounded like a lot of crap to me.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman
The law was amended so that we could take 100pc control of any bank where its equity had fallen below zero. Shareholders were left with nothing.

On its surface, this doesn't sound entirely unreasonable. If the entity is worthless and has no way to ever make good on its obligations without a bailout, why should the stock be worth anything?

When you invest in equities, 100% of your capital is at risk. That is the nature of the game.

5 posted on 03/30/2008 9:39:18 PM PDT by ROP_RIP
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman
Norway ensured that shareholders of insolvent lenders received nothing and the senior management was entirely purged.

Shareholders like voters need to start throwing the bums (elites) out aka feckless politicians and management. Lesser of the evils as long as it doesn't effect me thinking is suicide.

6 posted on 03/30/2008 9:43:53 PM PDT by VRWC For Truth (No mas Juan "Traitor Rat" McAmnesty)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

Just because an entity is illiquid does not mean it is insolvent. Bear Sterns may have been worth more than $10 per share in an orderly liquidation by the bankruptcy court. Most of those mortgage securities for which there is currently no market are not worthless. Since the government thought it important to avoid the disrupting effect of a bankruptcy proceeding, it would not have been reasonable to expect Bear shareholders to pay the full price of that policy decision. Where true fairness lies is a thoroughly murky subject, not clear cut as this article implies.


7 posted on 03/30/2008 9:46:05 PM PDT by devere (http://www.usmm.net/p2/thiswar.jpg)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

I remember when Republicans used to stand for small government solutions.


8 posted on 03/30/2008 9:46:57 PM PDT by mysterio
[ Post Reply | Private Reply | To 1 | View Replies]

To: ROP_RIP; Unknowing
"The law was amended so that we could take 100pc control of any bank where its equity had fallen below zero. Shareholders were left with nothing. It was very controversial," he said.

Doesn't sound too different from the actions taken in the aftermath of the last US real estate bust in the late 1980's/early 1990's when the Resolution Trust Corporation took over control of insolvent American banks.

9 posted on 03/30/2008 9:47:46 PM PDT by fso301
[ Post Reply | Private Reply | To 5 | View Replies]

To: devere
Also important, the Fed “exchanged” $30 billion in US Treasury debt for a basket of Bear Stearns’ illiquid mortgage securities.

No one has claimed that the original, pre-crisis value of that basket was $30 billion.

It is entirely possible that the Bear mortgage securities will be worth more than $30 billion in a calmer market, in which case the Fed will actually make a profit on this alleged bailout.

10 posted on 03/30/2008 9:55:31 PM PDT by zeestephen
[ Post Reply | Private Reply | To 7 | View Replies]

To: bruinbirdman
The Fed has been criticised for its rescue of Bear Stearns, which critics say has degenerated into a taxpayer gift to rich bankers.

The Fed should have loaned Bear Stearns the money - 0% for the first 12 months, then 6.99% - and if they're a day late, 39%.

11 posted on 03/30/2008 10:00:16 PM PDT by GOPJ ( Rev. Jeremiah A. Wright 's a racist - the black version of KKK David Duke.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

Am having a kind of ‘de ja vu’ but it is only the ‘Truman Story’ - and those ‘master manipulations’ I am thinking of. Nonetheless, this all has a strange quality about it. . .


12 posted on 03/30/2008 10:16:26 PM PDT by cricket (Damn Political Correctness; before it irretrievably, damns us all. . .)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

Evans-Pritchard has been edging out to the loony fringe for a while, but this takes the cake.

Maybe under Obama or Clinton. But unimaginable otherwise.


13 posted on 03/30/2008 10:17:35 PM PDT by RightOnTheLeftCoast ([Fred Thompson/Clarence Thomas 2008!])
[ Post Reply | Private Reply | To 1 | View Replies]

To: RightOnTheLeftCoast
Thought you'd appreciate this one.

yitbos

14 posted on 03/30/2008 10:22:00 PM PDT by bruinbirdman ("Those who control language control minds." - Ayn Rand)
[ Post Reply | Private Reply | To 13 | View Replies]

To: mysterio

“I remember when Republicans used to stand for small government solutions.”

That was a loooooong time ago.


15 posted on 03/30/2008 10:43:36 PM PDT by RKBA Democrat (Lord Jesus Christ, Son of God, have mercy on me, a sinner!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: bruinbirdman

We are soooooo dead!


16 posted on 03/30/2008 10:46:15 PM PDT by AnimalLover ( ((Are there special rules and regulations for the big guys?)))
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/v5SLFncnzYHc.asf

I very much enjoyed this Bloomberg interview with Jim Grant, publisher of Grant’s Interest Rate Observer, who is pretty widely regarded as a most astute observer/commentator on interest rate policy. And, I agree with virtually all he’s saying. For those who care about such things.

And for those who care about such things, I highly recommend listening to Don Coxe’s weekly conf. call here:
http://events.startcast.com/events/199/B0003/#


17 posted on 03/30/2008 11:02:28 PM PDT by Attention Surplus Disorder (We've checked, and all your zeroes are OK. We're still working on your ones.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: bruinbirdman

What has always frightened me so much about Bush is how he turns every crisis into a government power grab. It always takes me back to “1984” and “Brave new world”. Americans keep giving up there freedom in the name of Government is going to fix everything. When in fact Government is destroying everything that America was founded on. Even this current crisis was caused by relaxing rules and regulations for the sake of wall street and bankers. It gave them the chance to create this whole mess. Is the federal government now proposing to ban these types of ponzi get rich quick schemes- No they are not. They just want more power to watch over it. They never used the power they already had. The financial “Geniuses” made all the money from it. They get to laugh as the American tax payer gets to try and bail them out. How far we have fallen.


18 posted on 03/30/2008 11:16:24 PM PDT by Revel
[ Post Reply | Private Reply | To 1 | View Replies]

To: mysterio
I remember when Republicans used to stand for small government solutions.

It...it seems SO LONG ago....sniff.

prisoner6

19 posted on 03/30/2008 11:31:07 PM PDT by prisoner6 (Right Wing Nuts hold the country together as the loose screws of the Left fall out.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Revel

I echo your sentiments.


20 posted on 03/30/2008 11:31:26 PM PDT by Attention Surplus Disorder (We've checked, and all your zeroes are OK. We're still working on your ones.)
[ Post Reply | Private Reply | To 18 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-54 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson