What to do with banks?
Obama has 4 options to tackle deficit:
1.Nationalize profitable banks and reduce deficit with such profit, saving Americans the pain of paying for the crisis.
2.Issue bonds and risk hyperinflation.
3.Print money and risk hyperinflation.
4.Raise taxes and slow economy down.
5.Do nothing and let all inefficiencies to be passed as poverty and unemployment to American citizens.
If you were Obama, what would you do with banks?
Make the agencies in charge of banks do their fucking jobs.
Entities like Goldman Sachs should exit from their "bank holding" company status.
FDIC should be held to higher standards.
It's bullshit to think that just because they have a mechanism to overtake failing banks, that banks are serving the public.
Re-institute Glass-Steagall or a comparative law separating investment "banks" from deposit "banks".
Hold open/public hearings on the relationship between our Treasury and the Federal Reserve.
Look to Canada and its national banks, and how they managed to avoid the kind of crisis the US is still suffering.
Indeed banks do not serve anyone but themselves...
Money as debt
http://video.google.com/videoplay?do...6453790090544#
Money as Debt II Promises Unleashed
http://www.youtube.com/watch?v=rxo_XPdpI_s
It's gone beyond that. Banks are allowed the low Fed rate of borrowing, but their borrowing puts citiznens' savings at risk.Originally Posted by ar81
Banks don't have the incentive to make loans to "regular folks" because they can just as easily borrow at zero, buy Treasurys, and make profit that way. Using depository money from "regular folks".
No reason to extend "their" capital or put it at risk from citizen borrowers who want a loan to start a new business.
If I promise you to buy your car and then I take back the offer, you may not have a transaction.
Banks instead would report a loss.
So a bailout is basically giving them money for broken promises that were just thin air.
"Bankruptcy" comes from broken promises, not from having higher expenses than revenue like in a normal company.
I'd say nationalize credit.
Normal people aren't treated like normal corporations. Do you suppose all those folks who walked away from their underwater mortgages knew they'd receive a 1099 from their lender, or that they have to pay taxes on that amount as "profit", whether they sold their home or not?
But big dealers like Donald Trump can not only make a living in bankruptcy or broken contracts, but huge profits. Because they can hire top notch lawyers. Credit is nationalized already, but only for the biggest players.
Do you want to know how much banks serve the public?
Banks lift executive salaries, cut bonuses
http://www.reuters.com/article/idUSTRE60A00220100111
How bankers transfer credit risk (losses) with synthetic collateralized debt obligation (synthetic CDO)
http://www.youtube.com/watch?v=0Q7ji-vPlP4
In case people are not familiar with CDO, a CDO is very similar to account receivable in accounting books, but it is collateralized.
Synthetic CDOs are supposed to be a form of investment in Wall Street that gives you interests, where losses from defaults are passed straight to investors, and banks lose nothing.
Despite Pledge, Bank to Raise Credit Card Rates, Blaming ‘Difficult’ Environment
http://www.nytimes.com/2008/11/15/business/15citi.html
Bank to pay back $20bn in US bail-out funds
Bank says it owes the US taxpayer a "debt of gratitude"
http://news.bbc.co.uk/2/hi/business/8411875.stm
Gratitude, not money...
Fed rejects request to help credit card holders. Tue May 5, 2009 3:47pm EDT
http://www.reuters.com/article/newsO...5444UR20090505
So banks canbe bailed out, but not people...
Arab prince plan shows he sees lengthy Bank recovery
http://www.reuters.com/article/idUSTRE6090AR20100110
Even China is alarmed with that what US is doing...
China alarmed by US money printing
The US Federal Reserve's policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.
http://www.telegraph.co.uk/finance/e...-printing.html
Look what investor Jim Rogers says
CNBC Jim Rogers states Inflationary Holocaust, dollar Collapse. Nov 2009.
http://www.youtube.com/watch?v=eeSIJF1vOPU
Jim Rogers-World Wide Depression. Dec 2009.
http://www.youtube.com/watch?v=4HkbS...eature=related
So many links so little time...
Banks should not be bailed out. But they should also not have any requirements to lend to borrowers who are not credit worthy.
You think Republicans are fat cats and swindle you...it's nothing compared to what the government has done in the past 15 months. It may have begun under Bush, and there may have been a real need, but it didn't have to keep continuing. Welcome to Wealth-Shifting 2.0 I added the 2.0 because it makes everything sound awesome and somehow super legit and important
Cleveland deemed most miserable city in USA
Government is no longer in charge.
Bankers have taken control of USA.
Doesn't Bitter live in Cleveland?
Canada's banks don't seem to have these severe problems....are all their banks nationalized or do they just have tighter/more conservative regulations?
Is that a serious question?Doesn't Bitter live in Cleveland?
Canada's banks don't seem to have these severe problems....are all their banks nationalized or do they just have tighter/more conservative regulations?
Hope is the denial of reality
Mistake by the Lake.Man, Detroit can't win at anything!
I think that's clear.Government is no longer in charge.
Bankers have taken control of USA.
The Rules
Copper- behave toward others to elicit treatment you would like (the manipulative rule)
Gold- treat others how you would like them to treat you (the self regard rule)
Platinum - treat others the way they would like to be treated (the PC rule)
The Onion: U.S. Economy Grinds To Halt As Nation Realizes Money Just A Symbolic, Mutually Shared Illusion
"Though raising interest rates is unlikely at the moment, the Fed will of course act appropriately if we…if we…" said Bernanke, who then paused for a moment, looked down at his prepared statement, and shook his head in utter disbelief. "You know what? It doesn't matter. None of this—this so-called 'money'—really matters at all."
"It's just an illusion," a wide-eyed Bernanke added as he removed bills from his wallet and slowly spread them out before him. "Just look at it: Meaningless pieces of paper with numbers printed on them. Worthless."
According to witnesses, Finance Committee members sat in thunderstruck silence for several moments until Sen. Orrin Hatch (R-UT) finally shouted out, "Oh my God, he's right. It's all a mirage. All of it—the money, our whole economy—it's all a lie!"
I worded it poorly, but you know what I meant.
Hmmmm.... Mutually shared illusions...? Like if he was mormon, or something.
The Rules
Copper- behave toward others to elicit treatment you would like (the manipulative rule)
Gold- treat others how you would like them to treat you (the self regard rule)
Platinum - treat others the way they would like to be treated (the PC rule)
Wall Street bonuses 'jumped 17% in 2009'
Cash bonuses for Wall Street bankers rose by 17% to $20.3bn (£13.2bn) in 2009, figures have shown.
Posting Permissions
Reply With Quote
