- advertisements -
Well when it comes to CIT group the bailout became permanent. The Bail out is essentially a transfer of funds from the Treasury to the banks in exchange for equity or other SIVs. If the bank files for bankruptcy, the government should be first in line, but probably first in line for pennies on the dollar, if that. The point being, there is no need to make loans permanent, when the borrower was already insolvent upon receipt. The mal-investment has already been made.
Here ya go:
"We" make it better ? You got a mouse in your pocket ?
Because the rest of us collectively don't amount to dog crap on the bottom of Goldie's shoes.
We are so screwed we can't even see "screwed" from here.
Fuck the banks and their FIAT trash!!
Put your savings into precious metals, and stop feeding the BEAST, or you are part of the problem, not part of the solution!
Just a test query - what would it take for you lot to trust a bank that claimed to back its notes with ....say, precious metals?
Inspections of the vault at regular intervals? Journalists and the public at all board meetings?
Just supposing there was such a bank, how big would you want the lending multiplier set?
Reserve requirements at 100% would do. In other words, they take deposits and loan them out and keep the spread. Won't make them rich but basically just serve as a public function. They can sell the loans to insurance companies, etc, and put it back on the asset side of the balance sheet and loan it out again, but no ponzi. That about sums it up.
everyone sell equities and buy PM's and then hunker down as a consumer...thats some ammo
Lead: the PM that protects your PM's
Really? Raise a ruckus? What would that be, exactly? I sure hope it's not another letter to Congress and protest in Washington, because it's clear enough to me that expecting change through use of the political process is an activity that satisfies Einstein's definition of Insanity. I, and I suspect nearly all of your readers, are well aware of the problem, so alerting us to it and telling us to raise a ruckus without any concrete proposals is just plain annoying. Unless you have some direct action proposals to bring this corrupt system to an end, you can cease stating the obvious -- that we're totally screwed unless we "do something." Brilliant. In other news, rain is wet.
Gekko is right. Bailouts will continue until the fiat dollar system is a smoldering ruins. Some people are thinking of (legal and nonviolent) ways to make that happen that involve something a little more potent than taking a mark for writing letters, taking bus trips to D.C. and posting missives on the internets. Here's one, it would be good if others joined in:
Curious what would happen if everyone pulled their deposits from one of these banks? Would they just prop it up and allow it to go on with no deposits?
THAT is the only action that would work!!
We must collectively act to pull all of our assets from these criminal banks.
CHOOSE to put your money in a small, responsible bank or credit union that DESERVES and has EARNED your business and trust.
The longer we allow banks to abuse us like they are without consequence, THE WORSE it will get.
If you have your money with Bank of America and continue to BITCH AND MOAN about these criminals, you have NO BASIS for an argument!!
ACT TODAY to make a difference!!
There is nothing new under the sun
Since the days Old Man Morgan directed the first 1907 stageshow and subsequent unparalleled personal propagrandized heroicity in single-handedly orchestrating the Genesis seed of the first U.S. [staged/planned/executed] bailout of the City of New York the ancient Ashkenazi tribe has mastered this most beautiful craft of acting out and repeating the script with such exact nicety and oramentation the famed patriarchs of western thespianism stand in awestruck marveldom. And ah, yes, the stage is set yes once again for the House of Morgan to repeat thy most worthy creation for most certainly it bears repeating...there is nothing new under the sun.
Really? Raise a ruckus? What would that be, exactly? I sure hope it's not another plea for us to write our Congress and protest in Washington, because it's clear enough to me that expecting change through use of the political process is an activity that satisfies Einstein's definition of Insanity. I, and I suspect nearly all of your readers, are well aware of the problem, so alerting us to it and telling us to raise a ruckus without any concrete proposals is just plain annoying. Unless you have some direct action proposals to bring this corrupt system to an end, you can cease stating the obvious -- that we're totally screwed unless we "do something." Brilliant. In other news, rain is wet.
Gekko is right. Bailouts will continue until the fiat dollar system is a smoldering ruins. Some people are thinking of (legal and nonviolent) ways to make that happen that involve something a little more potent than taking a mark for writing letters and posting missives on the internets. Here's one, it would be good if others joined in:
What we need to do is start vetting new candidates to win in 2010. This is not happening at the moment. There are no serious contenders for the opening slots.
Here's where I start sounding like a broken record...
Stop using the TBTF institutions. I know...
But it would work.
It would... if people got mad enough.
They're listening to the guys who have the most education and biggest apparent credentials.
Problem is, those guys are fools.
Their fear is that credit collapse of debtmoney is upon us...banks peddle dollars, and if that product doesn't grow, they collapse.
Fed didn't want to have to print money but it's occurring to them that there is no way now to grow out of the compounding interest component.
Without the bailouts, these banks collapsed. Too much bad shit in their conduits, too much leverage. Real rates of return have collapsed because economic activity is less profitable now, EROI is declining. So you make it up with leverage.
When things go south, though, it all implodes. At some point, it will require infinite delta debt to create delta GDP.
We print or default, simple as that. We're not going to have a zombie decade, we won't make it that far. Growth-based economics is approaching an implosion point.
Japan showed us that monetary policy cannot reverse a real-world problem of excess capacity and inability to grow.
How the hell could anybody turn a profit these days on manufacturing anything? It's hard to profit pumping oil or doing just about anything. Labor glut, capacity glut, glut glut glut everywhere.
The problem is on this matter hey don't care. They were overwhelmed with anti-bailout calls the first time and they did it anyway. Short of showing up to the capital building with torches and pitchforks they will always bail out the TBTF at the expense of the taxpayers.
Big Bad Bank Bailouts the giant sucking sound of
today versus the Perot export of jobs to BRIC...
Actually, they'll succeed unless we completely reject the dollar. The bailouts will not die until the present unconstitutional form of the currency does.
Please help support it in the short term so the market can collapse. Then I'll dump it with you in the medium term.
Actually, they have already succeeded. Its the inevitable failure of the fiat dollar that will finally stop them. Unfortunately there will be an awful lot of fallout when this happens.
Through taxes or inflation probably doesnt matter. They know the situation is hopeless (the "real" national debt, not only in the US) and therefor we will have a major schock one day (war, who knows what else).
It's only not fair and totally irresponsible for future generations. In this environment, one can easily buy stocks, it can only but go up until the final clash.
Speaking of War, Max Keiser played a YouTube of
a Defense Analyst on CNBC touting ATK,GD,NOC
and claiming 0 will support Israel taking on Iran
this coming March...
(Maybe some ZH sleuth can find it.)
The last date that the conspiracy theorists were wetting their pants about was October. That didn't happen. I'm glad I didn't waste money on any Geiger counters or N95 masks then.
Quoth Geithner today: "History suggests that exiting prematurely from policies designed to contain a financial crisis can significantly prolong an economic downturn."
So by that logic, if our entire economy is a ponzi, it will remain in a perpetual state of financial crisis, and support measures for the banks will never be removed.
To paraphrase the title of this post, Giant Banks Are Trying to Make Bailouts Permanent. They'll Succeed
I am optomistic that Americans as a people can overcome any hardship when things really hit the fan, but I have zero faith that our government will do anything that favors citizens over the financial industry.
Japan showed US the way...
"when things really hit the fan": didn't it happen already ?
USA is similar to a plan economy, where the government distributes money to anyone arguing he is system-relevant. This will end badly and of course nobody will be responsible !
"I am optomistic that Americans as a people can overcome any hardship when things really hit the fan, but I have zero faith that our government will do anything that favors citizens over the financial industry."
Might we amend the tail end of this remark to read, "but I have zero faith that our government will do anything that favors citizens over the financial industry, the arms or drug industries, or AIPAC"? That revision puts the problem more inclusivelt. I mean you wouldn't want to start trusting the Congress to approve its next anti-Iranian resolution with anything less than 95% yeas would you?
According to Sam Keen and Max Keiser, $11 T
could have paid off all credit card dent and home
mortgages instead of the $13 to $23 T committed
to prop up big bad banks. Effects may be felt for
three decades or worse, the end of money and
the beginning of barter...
Doubling down on a lost decade to avoid a lost generation...
Doesn't work in casinos and doesn't work at the
Fed and Congress either.
They gambled away the rent money and expected
Uncle to make it all better...
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Advertise With Us
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
How to report offensive comments
Notice on Racial Discrimination.