The bankruptcy code is a political animal skewed to protect deadbeats by pols who want the votes of great masses of deadbeats.
When this bites them, because great masses of voters are *also* bank depositers, and stealing from banks too much all at once threatens great masses of voters, they blame anyone but themselves.
But they are on the hook for it and they will pay.
Today the Fed is paying by buying $1 trillion in securities from corporations. That works.
Not paying doesn't work. Pretending it is all the dang rich banker's fault is an utter lie and a slander. They are approximately the only honest men in the building. The winners among them are approximately the only intelligent men in the building. Everyone else is by comparison a rogue.
Is the congress going to give back all their own pay and retirement benefits and campaign contributions, because the government is running a deficit?
It is all utter class warfare hogwash, start to finish. Nobody (but the Fed right now) is paying any attention to the common good and recovery, everyone is just smearing their neighbors hoping to avoid blame for any of it.
As though blame has anything to do with fixing a particle of it, and as though those casting the stones are the biggest sinners in the universe...
You are truly a “voice crying in the wildreness”. Stick to your guns. You recall your writing, “Don’t fight the Fed.”
Today, on CNBC, Jim Cramer said EXACTLY the same thing. He went a step forward and said that “In Bernanke We Trust” should be stamped on our currency.
So at least you have the company of one in Cramer.
The “winners” were so smart that they accepted bets from people that couldn’t pay up in the amount of the bet. They never could, and the winners and the losers flat out knew it. That doesn’t sound smart to me.
I have no problem with the fed buying securities right now. But that debt should be retired as soon as practical and not allowed to accumulate.
If I make a bet, and I can’t pay it is my fault. The bankers placed bets, yet insist that it is not their fault. Who is being honest?
Allowing these corporations to engage in multiple types of banking and grow huge has proven to be a massive mistake. That mistake belongs to all of us. In the name of effciency a very few banks were allowed to grow so large they could hold the rest of us at gun point by threatening their own failure. That isn’t particularly honest either. It might be smart, but not honest.