"If the government must bail the bank out … it should basically wipe out the management and wipe out the shareholders"
- David Beim, Columbia University, March 2008
"There probably will be some bank failures"
- Federal Reserve Chairman Ben Bernanke, February 2008
"There is a strong need for urgent action. I would be very, very seriously considering the possibility of using public funds in one form or another."
-Former Treasury Secretary and current Citigroup whore Robert Rubin, March 2008
March 22, 2008
The banks will fail. The taxpayers will bail them out. Their shareholders will be crushed. The dollar will fall. It's just the way it's gonna be.
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The ruling class in this country is free to do what they want. They will always control the banking cartel, no matter how bad they suck at it. Oh well, it isn't my money, it is their system. If foreign exporters are stupid enough to take beads in trade for Manhattan, who am I to complain?
I would be very, very seriously considering the possibility of using public funds in one form or another Of course you would, you're a thief.
correction: grandma pk here
The banks will fail.
There will be an attempted taxpayer bailout passed over our objections.
It will not be sufficient.
The banks will fail.
I believe in capitalism. It can be cruel at times but the competitive aspect of it ensures the survival of only the fittest. We all win when competition forces companies to improve their quality, efficiency and productivity. To me, that's the beauty of capitalism.
A bank bailout is not just an unfair use of taxpayer money, a transfer of wealth from the poor to the rich. A bank bailout rewards inefficient, unproductive, incompetent business practices.
We will all suffer as quality declines, as we get less and less for the money we pay the banks.
"There will be some bank failures".
There also will be some Pancakes at IHOP.
Question to Kieth ,and the HP Crew-Was the last weekends Bear Stearns Fiasco (A) a rescue of Bear Stearns? OR (B) a rescue of JP Morgan ,and the FED?
Some are speculating that Bear was sacrificed to add any available funds,and assets to JP Morgan to shore them up.
SHAKSTER
Anyone else think Bush should be made to stay in office to endure the mess to come? Probably no way this gets fixed by 2012. The next president is likely to be a one-termer.
Impeach and Prosecute Bush-Cheney.
Do it NOW.
"If the government must bail the bank out … it should basically wipe out the management and wipe out the shareholders"
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and NO GOLDEN PARACHUTES for these a-holes!
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GEE, use public funds....what a Frickin surprise!
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With Bear-Stearns, wasn't that bailout just for the upper-management so they did not have to file bankruptcy and have to give back their million dollar plus bonuses that they got in January. Everyone else connected with them especially shareholders got crushed. What is fair and just about that! The rich have the Bush administration in their pockets. No justice. Sickening.
Robert Rubin - leftover thief from the Clinton days.
Impeach Schumer-Frank-Dodd-Hitlary-Peloser NOW
The only obligation that the government has is to back FDIC insurance,and maybe some insured pension accounts .Since not that many people have savings these days ,how much of a obligation could that be ?
So that leaves all the banks and lenders and Wall Street firms and hedge funds that are losing money on mortgage backed investments .Ok, let them fail .Let the stockholders lose their shirt .Let the investors sue the banks for their false advertising and let them go belly-up . Let the banks and Wall Street firms fail. So, new banks pick up the slack or stronger banks buy out weak banks .
Why is it the affair of the Feds to risk taxpayers funds in giving loans against junk paper the money changers cant sell . Why should the money-changers be able to sell a bunch of bad paper anyways ? The lenders can't sell the bad paper at par value because the gig is up .
Why give these money changers any money at all . They don't know how to lend it out anyway . They will just take the money and squander it anyway or use it for purposes other than the Feds intended . You would think by now that the Feds would realize that the lenders aren't going to give out credit under the prior terms during the boom . Thats why this bail out is simply a transfer of loss to the taxpayers balance sheet .
The government is the party that will have to give out the easy lending for a while anyway and they will be the only lender in town .
What a outrage . Now the next thing you are going to hear is that the government is going to bail out homeowners directly ,or buy up foreclosures ,or give refinancing to gambler borrowers(again on the taxpayers dime ). That move will only drag out the housing correction and create loans that will go into foreclosure eventually at the taxpayers expense .
Since when is it the business of government to prop up a asset price of a market . Should the government subsidise car purchass or big screen TV's?
I don't think the public in general agreed to the FED/Government bail out plan (if they knew the price that would be paid out of their own hide ) .
Its not acceptable that the Feds say things like they did what they did to avert a greater disaster .What was that greater disaster -the rich people losing money -or lenders losing money they deserve to lose ?
The Feds say they are giving low cost loans to the money-changers to free up money ,yet the money changers are not lending that money that is freed up out .What a joke .
There is no evidence that what the Feds are doing is achieving any purpose other than a outright tranfer of loss from the lenders books to the Feds books (the taxpayers ).
If all these corrupt firms go belly-up ,who cares . New orginations will replace them if there is a market need .
I bought a stock one time that eventually went belly-up . Did the government come in a save that Company from failing ,no way .
One condition for public funds shoring up banks:
-locking up the entire management board of such a bank for 30 years.
Gotta have some entertainment for the money.
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