Banks Admit Bailout Won't Work

Yahoo! ^ | Oct 17, 2008 | Henry Blodget

[george76]

A few days ago, when Hank Paulson called the heads of the nine families to Washington and shoved cash down their throats, he announced that the banks would use this new taxpayer cash to lend.

They won't, of course. They'll hoard it like a starving family who has just been given a grocery cart full of food.

And after a few days of silence, even the banks are finally admitting that. So it's back to the drawing board for Paulson & Co.

Next steps?

Find a way to force the banks to write their assets down to nuclear winter levels, so 1) private investors don't have to worry about getting sandbagged and therefore invest more in the banks, and 2) the banks know they won't be forced to take more multi-billion dollar losses. Only then will the banks begin to lend again. And at that point, the only challenge will be finding people and companies to lend to, in an economy headed straight into the tank.

[ex-Texan]

Mervyns to Close Remaining 149 Stores in Bankruptcy !

The good news is that new stuff will be put on sale through the Christmas Season. Yipppeee ! Cool stuff on sale. Bad news is each store has 80 - 100 employees. Do the math yourself.

Even commies, socialists and closet national socialists love fire sales . . . Reichstag Fire, nichwahr _________ ?

[supercat]

I have my theories on it, but what say you?

Biggest bank robbery in the history of the world.

[Texas Songwriter]

Biggest bank robbery in the history of the world.

I agree, but it is much more than that. If you rob a bank for 1 million dollars, kill 50 people, you are not called a bank robber, You are called a murderer.

With what Paulson has done, he has stolen billions, yes trillions, and, as a result of that, the unknowable number of deaths will ensue as a result, loss of buisnesses, loss of homes, loss of nearly every persons retirement fund, loss of medicare, loss of social security payments, loss of ability to provide a future for our children. The losses will be staggering, the worst of which, I fear, will be the loss of our freedom and our country (not hyperbole). What seems to be arising out of the ashes, is pure socialism which will evolve to communism, despotism, universalism,and despair.

This is Captain Sunshine, signing off for now.