Bailout Bills

[Sibling Chatty]

Or if the war profiteers are gotten, and the criminals that caused this mess get penalized.

They made it a necessity to sell out this country to the Chinese, I think they need to lose it all while we try to get it back.

[Scriblerus the Philosophe]

The sidelining of Congress would only be two year (two year too long, but still), particularly if Dodd's version is passed.

While I like the idea of letting the bankers get completely stripped of all personal assets, letting the banks die has it's own problems. Assuming they croak, a hell of a lot of people are going to loose money. FDIC insures only those accounts that have $100k or more, leaving everybody else to loose their savings and whatever they have in checking, if it's under that amount. That's hundreds of millions lost.

UPDATE: They want to include auto loans. That's ridiculous. Cars don't cost as much as a house and are far less important than having some sort of roof over your family's head.

[Griffin NoName]

UPDATE: They want to include auto loans. That's ridiculous. Cars don't cost as much as a house and are far less important than having some sort of roof over your family's head.

They're not about cars !  It means lending money to oneself. Brilliant idea.

[Aggie]

I

While I like the idea of letting the bankers get completely stripped of all personal assets, letting the banks die has it's own problems. Assuming they croak, a hell of a lot of people are going to loose money. FDIC insures only those accounts that have $100k or more, leaving everybody else to loose their savings and whatever they have in checking, if it's under that amount. That's hundreds of millions lost.

UPDATE: They want to include auto loans. That's ridiculous. Cars don't cost as much as a house and are far less important than having some sort of roof over your family's head.

I think I'd be quietly slipping money out of my account if my bank was looking feeble.  If you happen to have anything in Washington Mutual at the moment, RUN!

Agree on car loans, WTF?  You can live sans-vehicle in many places, and you can buy a beater with a couple of months car payments in nearly all. While I do fully understand the necessity of _a_ vehicle of some sort in a big country,losing a new car will not make or break most of those with the ability to originally afford the payments on said new car. I have no pity on those unable to make payment on their Hummer because oil is up and their McMansion got repossessed.

Then again, that car roof may be the only roof over some people's heads at the moment.

[Griffin NoName]

I recommend pre-fabs on wheels. 

we are about to have a pre-fab post-WWII estate made into a National Heritage site. Some of my cousins lived there in one; I visited as a ?5 year old and thought it was fab (!!)  so I am delighted.

[Bob in a quantum-state-of-faith]

The sidelining of Congress would only be two year (two year too long, but still), particularly if Dodd's version is passed.

While I like the idea of letting the bankers get completely stripped of all personal assets, letting the banks die has it's own problems. Assuming they croak, a hell of a lot of people are going to loose money. FDIC insures only those accounts that have $100k or more, leaving everybody else to loose their savings and whatever they have in checking, if it's under that amount. That's hundreds of millions lost.

UPDATE: They want to include auto loans. That's ridiculous. Cars don't cost as much as a house and are far less important than having some sort of roof over your family's head.

Ummm, for banks, you have that exactly backwards:   it's UP TO 100k is insured, over that--you're on your own.  So the little guys are protected, and anyone smart enough to spread his >100k money into multiple accounts.

That 100k max is per account.

[Sibling Zono (anon1mat0)]

I say let Buffet and THAT class of investors salvage the salvageable, and let the crap ones fail.

Buffet's started.

http://news.yahoo.com/s/nm/20080923/bs_nm/us_goldmansachs_buffett5

Screw the rest. FDIC protects the small and medium guy, others can take the hit, because if they're unprotected they're probably also liable for something.

As the old saying goes, fuck 'em and feed 'em fish heads. Go back at least 15 years and take away ALL their ill-gotten gains. Wah for them. Wah for those that trusted them.

A bail-out will only press the crash into the next administration. Let Gates buy out a decent bank and have Microsoft Bank of America, or whatever...a no dead trees bank. Buffet's got his, he can afford another.

WaMu?? Tough, you bunch of wankers. Die a nice death, and I hope they take your Mercedes AND your Lexus as they foreclose on your house!!

The guys not covered by FDIC are not the problem. Normally I wouldn't care but the problem is that regular businesses don't expand without credit, that goes from the mom & pop stores to the fat cats. Very few businesses keep lots of cash around (because normally it's stupid to have your money standing still) and the ones that do usually have it in different forms of investments. The moment the banks fail, there is no credit and half the corporations on the planet may fail simply because their cash flow depends on that credit. IOW letting the banks fail is a one way ticket to a catastrophic recession. Even the economies where the proper safeguards were in place will be affected.

[Bob in a quantum-state-of-faith]

The guys not covered by FDIC are not the problem. Normally I wouldn't care but the problem is that regular businesses don't expand without credit, that goes from the mom & pop stores to the fat cats. Very few businesses keep lots of cash around (because normally it's stupid to have your money standing still) and the ones that do usually have it in different forms of investments. The moment the banks fail, there is no credit and half the corporations on the planet may fail simply because their cash flow depends on that credit. IOW letting the banks fail is a one way ticket to a catastrophic recession. Even the economies where the proper safeguards were in place will be affected.

Exactly. That was the serious problem that the proposed insurance on Mutual Funds would've exposed:  once Mutual Funds were FDIC-equivalent insured, who would use a bank anymore?   Except for a working checking account, most of your funds would be put into a flexible Mutual Funds account, not a savings, passbook, CD, etc. 

Without those large inflows of cash, banks would fail: money in the checking accounts is only a fraction of their cash-inflow.

Without deposits to offset their loans, they legally cannot make those loans (within limits, obviously).

Without business loans, many businesses would quickly stagnate and die.

Fortunately, the "bankers union" recognized the danger, and contacted the feds with regards to the Mutual Funds insurance, and it was quickly ammended:  ONLY the pre-existing at risk Mutual funds would be protected.  Newly opened, or newly transferred accounts/balances would not be insured.

You'd THINK that those idiots that Bushya put into place would've seen that.... oh. Wait.  Nevermind about that last line...

[Aggie]

Any hint of what Bush is going to say tonight?

I'm guessing it's a plea to the public to back the bill, as I doubt there are any results to report.

[Bob in a quantum-state-of-faith]

Any hint of what Bush is going to say tonight?

I'm guessing it's a plea to the public to back the bill, as I doubt there are any results to report.

I have exactly as much idea as Bush himself does....which is nada.

He will read whatever they prepare for him, and comprehend it not at all.

I assiduously avoid listening to him if I am able.  I'd much rather read the summaries later.

[Scriblerus the Philosophe]

Thank you for the correction, Bob. Must have misread it.

The summaries will also probably be more enlightening than anything the Simian Shrubbery has to say.

[Aggie]

I assiduously avoid listening to him if I am able.  I'd much rather read the summaries later.

The Google Finance forum rats are wagering that the market will drop simply by the act of him opening his mouth.

[Scriblerus the Philosophe]

Oooh, this is bad. Very, very bad.

China banks told to halt lending to US banks-SCMP.

BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

[Bob in a quantum-state-of-faith]

Oooh, this is bad. Very, very bad.

China banks told to halt lending to US banks-SCMP.

BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

Here it comes....the sound of the other shoe dropping.

Thanks Reagon/Bush/Bush....!