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That makes way too much sense for our politicians to go with it.I was against any bailout of the banks. I would have preferred them to fail on their own and would have had all sorts of confidence in the banks that survived and weren't doing screwy things.
That makes way too much sense for our politicians to go with it.I was against any bailout of the banks. I would have preferred them to fail on their own and would have had all sorts of confidence in the banks that survived and weren't doing screwy things.
Relax, the bondholders become stockholders in bankruptcy. Admittedly some retirees will go to the ER when they find this out (CDs are bonds), a lot of people will be sued and no one will be happy but otherwise you let the same incompetent management team destroy even more wealth. The military axiom for Paulson, Geithner and Bernancke's handling of the meltdown is "Reinforcing Failure" also known as snatching catastrophe from the jaws of tactical setback. And no my background is in banking finance not economics although I do study economics.That makes way too much sense for our politicians to go with it.I was against any bailout of the banks. I would have preferred them to fail on their own and would have had all sorts of confidence in the banks that survived and weren't doing screwy things.
wtw - Aren't you an economist? I'm shocked to hear you go along with that statement, unless I have you mistaken for someone else.
When BofA fails, how much does FDIC have to pay out in tax dollars? How many people are just f#cked out of balances in excess of $100k? What does this failure and consequential domino effect do to M1?
Personally? I'd have rather seen the bank seized instead of 'Bailed out.' But pull out and let them fail? Poverty; massive, widespread, and immediate.
I wish it were just corruption but I think worldclass incompetence is a far better description. You might have to go with inter-library loan to get all of the data but catalogs of DRIP and DSP stocks have been around since the 80s and discount rates for purchase and dividend reinvestment of stocks bought straight from the company are usually found in tables in the catalogs. They come in three varieties:Nothing spreads as fast as corruption.
And nothing pays as well either.
I wish it were just corruption but I think worldclass incompetence is a far better description. You might have to go with inter-library loan to get all of the data but catalogs of DRIP and DSP stocks have been around since the 80s and discount rates for purchase and dividend reinvestment of stocks bought straight from the company are usually found in tables in the catalogs. They come in three varieties:Nothing spreads as fast as corruption.
And nothing pays as well either.
Employee and customer plans. FPL has had purchase and reinvestment discounts for employees and Florida residents as far back as I can recall. This type of plan builds employee and customer loyalty and if the discounts are less than 5% the company is generally solid. Even greater than 5% discounts for employees can mean the company is good and solid.
Less than 5% discounts for everybody. Really do your homework if either purchase or dividend reinvestment discount exceeds 3% then you are getting a 12.96% return boost annually for moving your money around 4 times a year. Even a 2.41% discount locks in a return of 10% in a flat market. At least one mortgage company with 1% discounts went belly-up in 93 or 94. (One month it was on my watch list and the next month it was gone and it had a name similar to Fannie Mae, Ginny Mae or Freddie Mac to draw in the suckers and I am glad I didn't get around to buying it. That was a close call I had my check ready to send in when I found out that it had gone bye-bye.)
At 5% discounts for everybody on purchases and reinvesting dividends the company is giving you better than 22.77% return for just moving your money around and a lot of but not most banks were in this danger zone in the 90s. Other than multi-family REITs, NG utilities and more rarely non-gas utilities in high growth areas no one can justify this high of a cost of capital.
It cost about $100/year to get this information in the 90s but I have seen no evidence that either the Fed or the FDIC bothered to acquire it. Much of the meltdown would have been avoided with even semi-competent regulation.
But pull out and let them fail? Poverty; massive, widespread, and immediate.
Who is NPA?
National People's Action (NPA) is a Network of community power organizations from across the country that work to advance a national economic and racial justice agenda. NPA has over 200 organizers working to unite everyday people in cities, towns, and rural communities throughout the United States.
From the link
Who is NPA?
National People's Action (NPA) is a Network of community power organizations from across the country that work to advance a national economic and racial justice agenda. NPA has over 200 organizers working to unite everyday people in cities, towns, and rural communities throughout the United States.
Racial justice agenda???
The fact that Bear Stearns had a AAA rating the day before the collapse -- no f*cking way was that just incompetence.