Posted on 09/27/2008 11:32:07 AM PDT by Petronski
I've received phone calls in the last hour from two economists I respect, one of them Larry Lindsey, the other in a position where he'd prefer not to be named. Both have government experience, neither is alarmist by nature, and they say this:
The huge European bank Fortis is apparently about to fail. The ripple effect on the American banking system could be disastrous, with bank runs, liquidity crises, and stock sell offs possible Monday. Wachovia may well fail next week. As Larry put it, this really will be 1933 soon if we don't move rapidly to stabilize the banking system.
And here's the bad news: the current bailout bill, whatever its merits and likelihood of passage, does nothing to address this.
Congress should pass by Monday simple legislation doing two things:
1. Giving the FDIC authority to provide unlimited deposit insurance through the FDIC for transaction accounts in banks.
2. Authorizing the Secretary of the Treasury to provide unlimited protection of principal in money market funds through the Treasury's exchange stabilization fund.
Maybe my acquaintances (and I) are too worried; maybe this legislation wouldn't quite be the right solution. But I wanted to sound what may be, unfortunately, a needed alarm.
William Kristol is editor of THE WEEKLY STANDARD.
I’ve still got all my stuff left over from Y2K. I’ve already got my cave picked out. Same one I used during the “Cuban Missile Crisis” when the Kennedy boys were in charge. Still got my Slim Pickens cowboy hat too!
Are 40 year old canned beans edible?
Yep. Odds are Citibank buys it and it’s this Sunday night’s big story before the market opens on Monday.
I’m sorry but the morons who invested in this bubble that was forming as far back as 2001 only have themselves to blame. When you take risks sometimes you get burned and that’s a reality that the rest of us deal with on a daily basis.
If they can’t properly manage risk then they shouldn’t be considered banks or at least there should be some regulatory distinction.
Don’t know but I’ll probably find out on Monday. LOL!
I wish I’d have stood in line every day for a week and got me a case of those MRE’s FEMA was handing out for Hurrican Ike.
Seriously, in the early 70’s I ate combat rations from WWII so I imagine anything canned will be edible. And by Monday they may be worth their weight in gold!
Yep, and that’s why my money’s still in there, but I still believe in keeping cash on hand. I know the money in Wachovia is safe, but that doesn’t prevent irrational panic from causing a run, which creates lines, and I’m not planning on standing or waiting in a line because I need some cash.
You are 100% correct that Socialist egalitarian policies got us into this mess.
Newt calls for Paulson to step down
While I’m a frequent critic of his- there are some sound ideas in his thinking here.
Look at the bright side.....the obesity problem will quickly resolve itself!
Look at the bright side.....the obesity problem will quickly resolve itself!
Look at the bright side.....the obesity problem will quickly resolve itself!
Look at the bright side.....the obesity problem will quickly resolve itself!
The obese people will eat the skinny people! Run!
This might be a good reason why people are "just beginning to wake up" - note the date on this story-------
ASSOCIATED PRESS
1:46 p.m. September 15, 2008
WASHINGTON – The Bush administration signaled strongly on Monday that troubled Wall Street shouldn't expect more rescues from Washington.
Treasury Secretary Henry Paulson declared that the current turmoil in markets and financial institutions ultimately will “make things better.”
Is (Wachovia) an FDIC institution, e.g. you have a checking account there?
I was deployed to Cambodia oncet. REally nice people, can’t believe what happened.
As far as percentages go, they took the hit. About 20 per cent. Pol Pot didn’t like people who wore glasses, for example. Don’t ask me what happened to them. He wanted to “start over” at Year Zero, and return to an agrarian society that would make anyone balk.
Apparently an elaborate ruse persuaded a large chunk of Phnomh Penh to go “pick up your social security card” and leave the city for their “benefits”. You don’t want to know.
Charles Krauthammer did just that on FoxNews Special Report on Thursday.
Neal Cavuto, on the other hand, predicted there would be no meltdown on Friday, and he maintains today that the crisis is overblown.
Sooner or later, softly or brutally, the old nag is going to come into her own.
I wish there was a slow, gentle way for it to happen. And if I thought this bailout was going to be that way, I would be all in favor. Truly, I would.
But I just don't see that it that way. If we do get a plan passed that avoids an immediate meltdown, America will call up that hot chick for one more -last- fling.
We have several accounts there, but yes, it’s FDIC, so insured to 100,000.
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.