Banking on Failure: Bailout Madness

How about this plan: Lets bailout the American people and foreclose on the banks instead of the other way around.
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Note: The videos I posted here do not show it, but Kucinich argued against the bailout and did not vote for it.
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End the Fed!
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Peace,
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Erik aka erkd1
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For the best up to date news go to*:
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http://dandelionsalad.wordpress.com
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http://www.jwharrison.com/blog
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Category:

News & Politics

Tags:

• banks
• bailout
• regulation
• deregulation
• Federal
• Reserve
• Kucinich
• free
• market

[geezzerboy]

Isn't "the Invisible Hand of the Market", just a modern term for God? The Big Guy in the Sky who will see that everything turns out right. Ya, sure.

[erkd1]

If it is, its not a benevolent God. When Adam Smith coined that phrase, he was saying there is a intrinsic force within the market, neither good nor bad as he pointed out both benefits and limitations of free markets. Indifferent at best or just not present at all.

[blackacidlizzard]

Enron is pumped with billions of taxpayer subsidies... then a flood of deregulation happens, with Enron ready to use some capital they happen to have on hand to make first strike in these frauds they're pulling, maneuvers they certainly confranced about with the aides who fine tuned the legislation.

Yes Fascism sucks.

And yes, Fascism is a style of or a possible route for capitalism to take.

[erkd1]

When Sweden had the same banking crisis in the 90s, for the same deregulation reasons, they nationalized the banks and adjusted rates so people kept their home and made good faith payments directly to the government. Then when the market became stable again, they sold the banks back to the private sector, with regulations reestablished, and the net result was a profit to the taxpayer. Yes, the system we did is exactly fascism, instead of people going to jail for fraud we made them billionaires.

[blackacidlizzard]

That's what I'm sayin.

This was a govenment op. This was targeted. This was collusion. This was state funded, state assisted, "enterprise interest"(when they decide what law applies to them and get taxpayer money, what is it that makes them not just another sector of government?) directed

.But i repeat myself :)

[erkd1]

No, the FDIC insures banking deposits, not depositors. So if the bank goes bankrupt, the insured money is given to the bank. Who then remain under FDIC protection, restructure under bankruptcy laws, gain assets by fractional lending and continue to do business. People should not bank with corporate banks at all, use a credit union, they serve the exact same function, they are member owned and they require no bailouts at all.

[blackacidlizzard]

Even if FDIC ensures the depositors (I thought they did? I was wrong? It still amounts to a subsidy. Banks are able to offer an insured account for less cost to the depositor than could be had though an honest insurer who depends upon solid returns to stay in business and not lose their shirts. And I'm sure with fewer conditions as well, in this wonderful "free market" government run economic failure (failure for who? probably not anybody who could see it coming)

[blackacidlizzard]

Just in case you were not aware I am opposed to this kind of thing, even if state monopolists with their snazzy free-market lingo call it deregulation.

If this is what you call deregulation, I am against what you call deregulation.

I shall call what I am for "unregulation"

And I admit, there will be pains faced, but the empowered people can and will much more quickly set things right - or at least much "righter"

[erkd1]

Yes, the FDIC should insure depositors themselves, not the banks. It allows for banks to be reckless as the government will cover loses. I am not stating my support for the FDIC by placing that graph, but it is accurate to the Saving and Loan scandal in the 80s. I don't think we should of bailed out those banks either. The whole point of this video is I am against the bailout of banks.

[blackacidlizzard]

I want to point out the source on that graph.

FDIC - taxpayer underwritten insurance. Saves the banks big on having to compete for real insurance plans at real prices reflecting real risks (including the risks of new investment schemes from a "deregulation" where the newly "freed" members of the market fail, and are reimbursed?" Reagan never spoke about that ... from companies a customer will trust to actually have the money as much as they trust the masters themselves to have it on hand.