Posted on 01/27/2009 8:47:41 AM PST by AncientAirs
The banks must be forced to disclose their "toxic" assets....
In effect, this function can be executed by the setting up of a "bad bank," as the Swedes did in the early 1990s. The bad bank clears the toxic assets off the books of banking systems by buying them at market prices and forcing write downs by the banks. A good bad bank forces banks to write down their bad assets and cleanse their balance sheets with those made insolvent being recapitalized, nationalized or liquidated by the state. But it is equally possible to use a bad bank to buy the banks' toxic waste at inflated prices so that the bank can start lending again. That's when it becomes a bad bad bank.
(Excerpt) Read more at online.wsj.com ...
Why not let the banks that have toxic material die?
Support the banks that invested wisely and were prudent?
Why must ‘we’ support failure?
I agree...but it will be a painfully slow process as the bank execs are doing all they can to protect their way of life even though they and the polcitico’s have been caught together fornicating in plain view.
If it’s worthless, then let the federal government buy it...
Liberals support failure, always. It’s their only means to fund their livelihoods and stoke the warmth of their Utopian mindsets.
No, sell to the individual Dems as a get rich investment tool. They’ll bite.....just repackage it. Hardworking Americans do not need to eat the crap.
“If it’s worthless, then let the federal government buy it...”
Quick question: Who do you think funds “the federal government”??
??
Support the banks that invested wisely and were prudent?
Why must ‘we’ support failure?
OK, you didn't take your medicine as ordered today by the state. Two choices, go directly to the doctor, get the injection good for a month, or the people at your door will escort you to your local gulag.
By the way how do you choose which ones will be failing in the near future?
If you can't separate the soon to be bad ones, do you just give the bad bank all of the real estate loans?
Most of them will as they did with the S&L rescue. But to let them die naturally would take too long, lock up the financial system indefinitely, and make the problem worse than it actually is.
Support the banks that invested wisely and were prudent?
If done correctly, the cleansing of the system will help all viable banks and help the country in general. It's too bad W didn't have the leadership, the brains, or the morals to do such a thing. Instead he shoveled the money to his big corporate friends, helping only them and the incumbents in DC.
I disagree. S&L was contained more to the US. This is Global in Nature.
The markets will destroy the failed banks faster than the creation of a ‘Bad Bank’. Allow the markets to clear the toxic material than the Gov’t solving the process.
The Gov’t needs to stop handing out money, once that happens, they will ‘correct’.
morally bankrupt often leads to financially bankrupt.
Most of the koolaid drinkers that voted 0 haven't a clue or refuse to even admit the facts.
Beginning in 1st qtr 2004, once I saw the open border policy remained in place after 9/11 (no fencing), more government mandates to support the illegals and not enforce immigration law, all the house flipping shows starts and homes skyrocket in price, well, didn't take much to figure what was coming down the tube. In early 2005 I started researching hedge funds and did pay attention to quick blurbs about W and McCain warning of problems with Fannie/Freddie.
Once I realized Jamie and Franklin were working there....BINGO!!! the CFR and Trilateral Commission was hard at work.
Been playing catchup as fast as I can, but the goobermint hides stuff and diverts stuff well.
If you work for them and don't lie/cover/fall/divert for them, you wind up disappearing, your plane goes down, or you commit suicide in a snowy government park. You know the most preferred type of self inflicted gunshot suicides.....strait into the back of your own head at a downward angle with a coat on. Get the picture?
Well, the global derivatives, toxic loan, print worthless paper for bailout, 'elect' a well spoken puppet Ponzi scheme was well planned and well executed.
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