When are you going to man up and say that not only should the government have not bailed out the banks, but let them collapse. And then take it father by saying the government should get rid of the FDIC as well. Then you and all your friends and family would have lost their savings, because otherwise you and all these other people would just be collecting a check from the government after their bank failed. That's not what capitalism and individualism is all about. People can put their money in the Stock Market and win and lose, why not banks and your savings?!@!!!
Maybe your axe wouldn't be so small if you'd stop f*cking grinding it constantly.
All government programs are collectivist! All Government agencies are incompetent ALL THE TIME! All government involment involves paperwork and bureaucratic nightmares and pee tests! All government employees are lazy and stupid! When will you people understand????!!!
When are you going to man up and say that not only should the government have not bailed out the banks, but let them collapse. And then take it father by saying the government should get rid of the FDIC as well. Then you and all your friends and family would have lost their savings, because otherwise you and all these other people would just be collecting a check from the government after their bank failed. That's not what capitalism and individualism is all about. People can put their money in the Stock Market and win and lose, why not banks and your savings?!@!!!
I said that the banks shouldn't be bailed out. I said it here loudly and often.
I'll say it now.
The feds should take over the large banks, cut them up and sell them off. They should use anti-trust laws to prevent any company from getting to big to fail.
I said that the banks shouldn't be bailed out. I said it here loudly and often.
I'll say it now.
The feds should take over the large banks, cut them up and sell them off. They should use anti-trust laws to prevent any company from getting to big to fail.
I'll pass on the bank system failing and ending up like some eastern European country.
Putting caps on bank size I think wouldn't be a bad idea. Did you know up until 2 (maybe 3) decades ago, a bank could only operate in the state in which it was chartered?
The idea that only a certain amount of deposits can be held by any given bank is the whole premise behind the FDIC - that's why they (up until recently) limit coverage to $100,000 per depositor per bank (not including beneficiaries, etc.). That encourages people to spread large sums of money around to different banks, with the presumption that it's much less likely that multiple banks would fail as opposed to one large one.
As is, the government limits banks to holding 10% of the country's deposits, but only via bank mergers/acquisitions. (They can go above that limit via people depositing money individually). That's part of the problem with Bank of America, for example - they're already beyond that cap.
I think the whole idea that the choice was between the bailout, and collapsing the economy is a misunderstanding of the situation. Letting the banks collapse would mean they go to bankruptcy court, which means all their assets get audited, which means a new bank is constructed out of real assets of the old one. It would be nationally supervised for a period before returning to the private sector. The alternative, which we currently have, is propping up the same failing assets, with the same administrators that engineered the catastrophic failures. I'm convinced that this problem has not been solved at all, only delayed and slowed down a little - through billions of dollars of taxpayer money. Someone please school me as to why I'm wrong, but until there's an audit to get rid of the bad financial instruments, and the greedy crooks who created these scams get the boot, then I call bullshit on the bailout.
I think the whole idea that the choice was between the bailout, and collapsing the economy is a misunderstanding of the situation. Letting the banks collapse would mean they go to bankruptcy court, which means all their assets get audited, which means a new bank is constructed out of real assets of the old one. It would be nationally supervised for a period before returning to the private sector. The alternative, which we currently have, is propping up the same failing assets, with the same administrators that engineered the catastrophic failures. I'm convinced that this problem has not been solved at all, only delayed and slowed down a little - through billions of dollars of taxpayer money. Someone please school me as to why I'm wrong, but until there's an audit to get rid of the bad financial instruments, and the greedy crooks who created these scams get the boot, then I call bullshit on the bailout.
If banks go bankrupt they don't disappear, true. But you'll have mass insanity - people will completely shit themselves if major banks start going bankrupt left and right. People will run on banks, removing what capital they do have on hand, exacerbating the situation. On top of that, it will spread to the "good" banks (they do exist), completely dragging down the financial system.
That's why letting Lehman fail has been held up as a major misstep - it put a major dent in public confidence.
And if you need further proof that the government can't let major banks go bankrupt, look back at the articles and pictures from when IndyMac failed. People lined up around the block to withdraw their money for no reason at all, simply because of an irrational fear of a repeat of the 1930s. The FDIC continued operating the bank seamlessly and honored all withdrawal requests. Operationally, nothing happened. But customers went nuts all the same.
SmallAxeRick
497 Posts
Comments
All government programs are collectivist! All Government agencies are incompetent ALL THE TIME! All government involment involves paperwork and bureaucratic nightmares and pee tests! All government employees are lazy and stupid! When will you people understand????!!!
I said that the banks shouldn't be bailed out. I said it here loudly and often.
I'll say it now.
The feds should take over the large banks, cut them up and sell them off.
They should use anti-trust laws to prevent any company from getting to big to fail.
I'll pass on the bank system failing and ending up like some eastern European country.
Putting caps on bank size I think wouldn't be a bad idea. Did you know up until 2 (maybe 3) decades ago, a bank could only operate in the state in which it was chartered?
The idea that only a certain amount of deposits can be held by any given bank is the whole premise behind the FDIC - that's why they (up until recently) limit coverage to $100,000 per depositor per bank (not including beneficiaries, etc.). That encourages people to spread large sums of money around to different banks, with the presumption that it's much less likely that multiple banks would fail as opposed to one large one.
As is, the government limits banks to holding 10% of the country's deposits, but only via bank mergers/acquisitions. (They can go above that limit via people depositing money individually). That's part of the problem with Bank of America, for example - they're already beyond that cap.
Eastern European country as in former USSR (Communist, centrally planned, government controlled...) ???
As in poor infrastructure, pitiful economy, poor fashion sense, etc.
Of course there are exceptions to every rule!
If banks go bankrupt they don't disappear, true. But you'll have mass insanity - people will completely shit themselves if major banks start going bankrupt left and right. People will run on banks, removing what capital they do have on hand, exacerbating the situation. On top of that, it will spread to the "good" banks (they do exist), completely dragging down the financial system.
That's why letting Lehman fail has been held up as a major misstep - it put a major dent in public confidence.
And if you need further proof that the government can't let major banks go bankrupt, look back at the articles and pictures from when IndyMac failed. People lined up around the block to withdraw their money for no reason at all, simply because of an irrational fear of a repeat of the 1930s. The FDIC continued operating the bank seamlessly and honored all withdrawal requests. Operationally, nothing happened. But customers went nuts all the same.
[cough]elbows cropped from picture[/cough]