Posted on 10/09/2008 10:34:37 AM PDT by peace with honor
The Treasury plans to start injecting capital directly in US bankws as soon as the end of the October in exchange for passive investment stakes a source told Reuters
(Excerpt) Read more at cnbc.com ...
Of course its not, the GOP has been giving traditional conservatives the shaft for the better part of a decade on Foreign policy issues and government spending.
They have now moved into nationalization as the next way to make the conservative principles of the ‘more conservative’ party even more laughable..
Dammit all to hell!!! What the F*** are these dumb bastards doing to America. THis is an absolute outrage and MUST be stopped in its tracks!
Actually, it’s better than giving the money to them and forgiving the debt. Many of the banks we have been observing have easily 20-40% upside over the SHORT run. 20-40% return on $700B wouldn’t be all that bad providing it doesn’t end up in the hands of ACORN.
This website has info on powers given to the Fed by congress.
Some of those powers do not require approval of Congress - are used to be as measures of last resort.
Who says Communism is dead...
“Liberalism is just Communism sold by the drink.”
P.J.O’Rourke
Well, as long as the gays can’t get married...that’s what’s really important.
If they are doing what the Euroweenies did by buying into banks via preferred stock, this is a good thing.
LOAN them money if they need it. THe government has no business acquiring ownership of private enterprise. That is socialism, and we have already gone way too damn far down that path. The bailout is an abomination!
CALL, EMAIL, WRITE your Congresscritters!
Don’t mince words with them, either! Maybe a walk on Washington should be organized.
Tar and feathers for these pinkos.
I’ve got the feathers!!
I disagree...any time the government is involved in business; it is NOT a “good thing!”
Banks?
Put your money in a Credit Union!
“Well, as long as the gays can’t get married...that’s what’s really important.”
well, aren’t you glad you got that in. Did you join just for that?
Government is not involved in Federal Credit Unions?
Tell us how you really feel Pissant....
By the way, you’re right.
I’m hearing things like “let’s touch 401-ks” and things that even the clintons left alone (like rolling 401ks into Social Security).
Congress better pull its collective head right out of their collective asses before this becomes bad for them.
“Government is not involved in Federal Credit Unions?”
Yes they are but I don’t belong to a government credit union...thank goodness! LOL
It is far better than giving them a get-out-of-insolvency-free card by buying bad paper at inflated prices from the insolvent banks.
The government should give the banks an infusion of capital and require issuance of senior preferred stock, a punitive yield attached, the cancellation of any dividend on the common stock and subordination of dividends on any other preferred stock.
This is the fastest way to get the banks lending again.
Using the government to purchase bad paper results in a long, drawn-out recovery period. Look at Japan’s economic response as an indication of what happens when the banks aren’t cleaned up aggressively and re-capitalized; the lack of trust in banks goes on for a decade - or more.
Buying bad paper at higher-than-market prices won’t get people to trust banks again, and it won’t sufficiently re-capitalize them either. We, the taxpayers will just get the crappiest of the crap paper foisted off upon us...
Paulson’s plan never made sense. It doesn’t make sense now. It won’t make sense tomorrow.
What people need to remember is that without banks, the rest of the economy falls to the ground, and you get crap like “The New Deal” from socialists like FDR. The key to getting the economy going ASAP and preventing the socialists from gaining real political power is to get the economy moving again. To do that, we have to kick the banks in the head.
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