Posted on 09/24/2008 7:46:52 PM PDT by Iron Munro
Welcome to socialism 101...
Why isn’t elected official screaming “...this is good money after bad”. Good business 101. Don’t Do It!
FDIC insurance premiums should be based on the basis of the financial security of the institution. Just like cigarette smoking people pay higher insurance premiums. Just meeting the minimum capital standards in not enough.
I love credit unions. They are like the old local thrift savings and loans that were invested in their own community.
I have banked for years with my credit union and I can rely on them..with people who know me by voice on the phone. The other big banks charge you fees and change people like underwear.
"The average citizen has done everything by the book. They're being asked to bail out the highest-flying risk takers in my memory."
Yes, but the World is On the Brink, so quit bleating, little sheep, and line up to be sheared.
I don’t get it. Bucky did the right thing and he’s pissed that he could have got away with stuff but didn’t?
Mr. Sebastian points out one of many serious flaws with this bailout.
Troubled banks will have little choice but to go dump their bad paper even if it involves shareholder dilution. Well run banks will not dump their paper if dilution or other damaging terms are part of the plan. The end result - shareholders of poorly run banks may take a hit, but clean balance sheets will give poorly managed banks an operational advantage over banks like Mr. Sebastian’s.
Basically, this plan is likely to put good management at a disadvantage to incompetence.
What don't you get? He's pissed that even though he ran a respectable thrift, his bank is going to be affected in a negative manner becuase of the stupidity of the system and the unscrupulous behavior of some others.
By accident, I live in a neighborhood that is on solid ground. Apparently most of the lenders in my area have not fallen into this sub-prime trap. Home prices are down, but I don't see any more "for sale" signs around here than I did five years ago. Thanks be to God.
Those other banks should go under and he should get their deposits and loan business, and be more profitable because of his good business practices. Instead, his profits will lag because his good loans are affected by all the foreclosures, and because his competitors will be bailed out.
This guy is pretty neat. I liked reading this.
With Bush's interference the bad banks win, and the good banks are played for fools.
I suspect the timing of this crisis - right before an election. The financial mess has been known by anyone who showed the smallest interest for years. My guess is the bad banks and high risk takers felt they had a good chance of being bailed out if the crisis happened right before the election. And it looks like they're right. Bush played into their hand.
ping
Bush’s fault, right? Sounds just like MSNBC.
The really big financial institutions should be broken up into smaller entities so that never again will we have anyone say that a bank is too big to let fail.
There are thousands of smaller regional banks that are in excellent shape. But even if one of them failed, there are many others like them and life would go on.
The biggies need to be broken up, just as Standard Oil, the railroads and the big meat packers were broken up in the late 1920’s and 1930’s.
How true.
Plug in a weak, lame duck president with heavy duty connections to the finance business and an almost complete disdain for voters. Give him a chance to get even for being steamrollered on the Shamnesty bill and you got the makings of a disaster.
BTT
Apparently that was not the message that I got from the article or I wouldn’t have asked the question.
The last time I bought a car before negotiating a price with the dealer I called my credit union. I asked him what the current rate was. He gave me the rate. He then said, "go get what you want and tell the car dealership to call him to take care of the financing and paper work." Credit Unions are great. They do not take great risks and the person on the other side of the desk knows your name.
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