How about a brand new bank?

[letzrockexpress]

My macroeconomic learning was too many brain cells ago too have a solid answer for this question , so here goes:
The T.A.R.P. deal has not worked. The banks got the money and seem to be just sitting on it. They refuse to loan it. People need to buy stuff. They can't buy stuff if the bank won't loan money. Is the following scenario possible?

Congress demands the money back from the banks they bailed out, at least what is left after the execs got their bonuses and buyouts, etc. Congress then sanctions a brand new bank, or banks, that are chartered as an independent bank or banks, but held by let's say the dept of commerce until a viable and vetted ownership group could be found to buy them. This bank or banks would have no current debt as far as mortgages or credit cards are concerned. Once they were up and going, The current pompous behemoths of banking could be told to go pound salt. They would be forced to sell off any assets they were sitting on and/or go out of business. I am not suggesting a nationalized bank, just that the government act as a holding company, much like they did with Conrail, until a strong operator could be found. Is this crazy, or a reasonable solution?

 

[layoutshooter]

It did not work with Conrail or Amtrack, why would it work with banks? The government can't even run what the Constitution requires it runs. Layoutshooter

 

[mjolnir131]

Well what gets me is the fact that the big banks are in trouble because they over loaned monies.Congress then bails them out to make them solvent again, then gets upset because they are not engaging in the activities that got them in the jam in the first place.

 

[tallcal101]

Its called oversight. When the fox is guarding the chickens the same ****ed thing happens over and over. No friggin chickens in the morning Compound the problem with mortgage"agents" running "legal"operations over the internet promising interest free loans,and will,get the picture? Run it all the way up to AIG Insuring only the "A1 excellent " mortgages" bonds" (the best of the stinking trash heap) and you have what was left to us by you know who and his band of marry men.A bunch of fox's who single handedly let them run amok.

Linda Thomas,who was W' s appointed head of investigations for SEC slept through Mayhoff,Stanford and God knows who else. She was asleep at the wheel while the single thing she was paid to do was obscured by lobby $$ and insider influence. Good old GOP.

The banks should have been nationalized 1 years ago for a period of time that would have allowed them to deal with the toxic crap and get it off the books.No one is in favor of it,but it would have saved billions in the long run. If proper over sight had been in place,friggin Hank "the hack" Paulson never would have had a chance to get his filthy hands on the billions he dolled out to his buddies which they quickly turned into bonus's. It's a God awful shameful act of neglect by the prevuous administration.No one can tell me that these guys did'nt know the depth of the trouble they were in as they dummied up the books.
Obama is trying to fix a systemic problem created by the likes of Paulson when he was at Goldman Sacks.It took very bright minds to collapse the largest financial market in the world and it will take simple minds to try and get it on track.Simple and honest.Even Greenspan was on board with these thieves,how's that for trusting the best and the brightest.

I moved my account to a credit union in 07.They are still very solvent,still making auto and home loans to their members and they are run as a non profit. They have oversight. Pretty simple if you ask me.

 

[mjolnir131]

Mr Bernard Madoff was running his little Ponzi scheme back in 85-87 somewhere in there. So it's gone undetected way longer than just 43's watch

 

[tallcal101]

Bernard was Chairman of NASDAQ prior to his last reincarnation,which started around 2000 upon his retirement from NADAQ.
There was a whistle blower who's name escapes my now who was making a very clear case against Bernard 7 years ago,to Linda Thomas and her crew.
He was presenting overwhelming evidence that was dismissed.Bernard was to well connected,and someone behind the scenes was pulling Ms Thomas's strings,that is very obvious.
Here's the problem some of you have in a nut shell. If it took place on W's watch,he gets to take fall for it.Pretty clear and simple it seems to me. Same for Bill,same for Jimmy,tricky dick Raygun all the way back. If the inner you told you to vote for him twice it's time to suck it up and deal with reality.
The new guy cannot undo 8 years in 6 weeks.

 

[greg334]

Tallcal
I sort of agree with you but.....

Some of this stuff with the SEC goes back to LBJ when he tired to change some of the banking regulations behind the scenes and even FDR. Somewhere in that mess, under Kennedy (Old Man Joe) there are some pretty weird regulations to help out the good ol boys of 'finance' and those regulations gave us a lot of greif lately.

We can list out all the failures from the SEC lack of enforcement and being asleep at the switch under almost ever administration since its creation.

I do believe that Obama will not fix the problems because it is a political hot cake and his supporters, like Bush's and like Clintons will expect payback which means they want the Reid/Pelosi style investment programs to continue.

The other thing that gets me is that all of this started under Clinton, he made it a selling point that everyone will get a home. I dno't blame him entirely for this mess, and I do blame people like Greenspan and Buffet for pushing their views to solve the problems.

 

[hdxpedx]

SEC came DOWN and ATTACKED our BROKER guess they are just PICKY!! Bernie NO - MINE YES!!

 

[Tennesseahawk]

Letzrock... the TARP money was never meant to 'loan out'. Instead, a good number of larger banks were forced to take this money for the express purpose of buying smaller, failing banks. One banks in particular, Wells Fargo, didn't want or need the money, but was told by the Treasury sec they had to take it.

So, when everyone is told these big, evil, meany banks are hoarding money... they are... but not for the reasons the public thinks, according to the Dem talking-heads. It's typical Democrat politics to screw something up, then force someone to fix their mistakes, then throw them under the bus.

 

[letzrockexpress]

So, when everyone is told these big, evil, meany banks are hoarding money... they are... but not for the reasons the public thinks, according to the Dem talking-heads. It's typical Democrat politics to screw something up, then force someone to fix their mistakes, then throw them under the bus.

O.K., point taken... now how does this answer my original question?

 

[tallcal101]

Excuse me Hawk,but the problem here is not what happened by the time The Hack pushed TARP at the Banks. This was a last ditch flouder move. Back up 1 year when oversight was considered a naughty word around the banking community. This tone was set forth by the W administration from day 1.By the time TARP was tossed out as a life saver or a band aid,the croonies all had their bonus's,golden parachutes,jets,and homes on the Hamptons locked in. The entire mess (at the end) had nothing to do with saving the banks.
Hank made his gazillions. He always looked like he was about to step in a big pile every time he opened his mouth towards the end.Talk about a disconnect !!!!!
I can't help but think he wished like Hell he had never accepted the job,"if only the house of cards could have lasted for another 6 months". Good old country Karma comin' round.
Ye ha ,sorry Hank, your bald mellon and mug are frozen in time as part of the last days of the darkest of the dark days of our history.

 

[Tennesseahawk]

O.K., point taken... now how does this answer my original question?

Sure... they could do it... if they want to totally trash the free market system. It's funny, but if left alone, a capitalist system always fixes itself; yet the government never seems to get that. It always has to peel off the scab and stick its finger in the wound.

 

[LDB]

We don't want the facts of who tried to do something or who is a clueless airhead to get in the way of primarily blaming the Bush administration.

YouTube - Nancy Pelosi, Barney Frank, and Democrats are Clueless on Freddie Mac Fannie Mae and the financial credit crisis.

 

[Tennesseahawk]

Excuse me Hawk,but the problem here is not what happened by the time The Hack pushed TARP at the Banks. This was a last ditch flouder move. Back up 1 year when oversight was considered a naughty word around the banking community. This tone was set forth by the W administration from day 1.By the time TARP was tossed out as a life saver or a band aid,the croonies all had their bonus's,golden parachutes,jets,and homes on the Hamptons locked in. The entire mess (at the end) had nothing to do with saving the banks.
Hank made his gazillions. He always looked like he was about to step in a big pile every time he opened his mouth towards the end.Talk about a disconnect !!!!!
I can't help but think he wished like Hell he had never accepted the job,"if only the house of cards could have lasted for another 6 months". Good old country Karma comin' round.
Ye ha ,sorry Hank, your bald mellon and mug are frozen in time as part of the last days of the darkest of the dark days of our history.

Try backing up more than a decade, Cal; when the banks were forced to take bad loans in the name of 'diversity'. Then fast forward to 2001, when Bush first warned what would happen if the FM twins were not regulated. Then fast forward again to 2004 when McCain warned the same thing. Both times, the stooges (Fwanks and Dodd, along with Schumer and Waters) assured everything was swell.

Since you like mentioning bankers and their jets and mansions and such; what's your opinion of Franklin Raines? You know... the one who cooked the books to make his 90mil at Freddie Mac?

BTW... as much as you despise luxury of the rich and bloated; did you ever think that normal Joes make their living off of building those jets, and yachts, and mansions? What is it with you guys? Hate the wealth, not the taxes? Ppl need to think about that next time they ask a poor man for a job.

 

[Tennesseahawk]

We don't want the facts of who tried to do something or who is a clueless airhead to get in the way of primarily blaming the Bush administration.

That's right... never let the facts get in the way of a good spin... or lynching.

 

[tallcal101]

Ok ,I should always assume you guys are going to give me the small world view. I forget that you believe what you read in USA Today in a very literal sense.

Econ 101 for the last 8 years (quit blaming everyone including Tonto,Amos and Andy and the Lone Ranger) for the dire straits we are in.

Lets call the big pile of money sitting out there in banks insurance companies,stocks and bonds,world markets in general (you know,the things the Chinese make and ship back to us at profit). All the money that the world spends in a 1 year period for items like gum to trucks.Lots of dough.Perhaps 70 trillion bucks sitting around looking to get invested.The rest of the world knows that America controls a lot of that cash. And tends to be greedy. And tends to regulate in a un satisfactory manner.
Now,imagine sky scrappers in Shanghi for as far as the eye can see. Inside most of them are floor upon floor of the smartest money managers in the world (they own our economy remeber,thanks w for more then trippling that debt ).
Now,all that these bright Chinese accountants really want to do is manage the world economy,and make money for their investors,mostly the Communist Party. They don't want to make a paltry 1 or 2 % return,they are looking for 3 to 5 percent.They want to own stuff,like countries and all their debt.

So,along comes Uncle Sam in early years of the new malenium. The Chinese knew it was being run by fools and greedy bankers who would sell their souls for toys and homes and jets.What the world was lacking was a product the Chinese could sink their teeth into at 5% interest at the same time.
Along comes an idea that really only greedy Americans mostly republicans,could think up.
How about if we take our valuable real estate market and turn it on it's head. Lets give houses away to people who can't read very well,patiularly fine print,and can't add very well and tell them they derserve the American dream too.The Chinese ears perk up. The Chinese do't care if Fred or Leo or Claude can't make their payments,they are Chinese money mangaers with a much higher calling.

So,the greedy money mangers in America,who don't care a bit about Claude and his friends or the American people in general,talk all the insurance companies and retirement fund managers and bankers and freinds into what has now become known as the toxic assests debaucle of the last 5 years. Don't blame Mickey Roony one more time or I'm really going to get angry.It was not Fanny and Freddie's fault.It was those in charge (no one home) who were appointed to oversee them. Big picture folks,first term of w's watch.

So the real estate bundling of toxics begen,and most of the world jumped on board at 3 to 5% returs. OOOOOOOOOOOOOOOOOOOps.

The big money fund,called the world wide economy,saw this 3 to 5 % return on funds as something they could really bite into.The Chinese however,being the smartest money managers in the world,said we smell a Kung Fu rat,and wisely backed off early in the game.
After all,its better to let the rest of the world buy into the greedy American scam played off the backs of Claude and his freinds and then once again bail out not just the Americans but the while wide world. And this time we will really sock it to them on interest because they screwed up so badly.
And they will. Oh.those sneaky Chinese. and those greedy westerners.
Obama is smart enough to see the mess,and may very well be able to save our collectives A**'s if its not to late. otherwise it may be fisg and rice for all of us. Thanks w.
My condo on Hainon Island with an ocean view,close to where the ships are now interacting,is gaining value faster then my San Francisco house is losing value.
I guess it could be said the Chinese have once again out smarted the brightest banking minds and business leaders America ,including "Greeny" (kind of like "Brownie) but different.

End of class.

 

[EndGame]

How about our gov't just CONFISCATE the Federal Reserve building and start printing our own dang money! Another banking system? With the same monetary system?

Fix the monetary system first by placing the printing of our money in the hands of the GOV'T.

There is NOONE in GOV'T regulating the PRINTING of MONEY by the Fed. Reserve. It is being done by FDIC (Private Institution).

 

[EndGame]

If you organized another BANK who would you have regulate it? Private or Gov't?

The problem is the monetary system and WHO controls it...

 

[EndGame]

ALL industries are affected by the ROOT problem and that is the private institution in control of the money supply.

When you invest in the stock market do you not watch the economic indicators? What and who is control of the fluctuations of those indicators? Money, money, money, MONEY... Robber Barons!

 

[RLENT]

You guys are actually starting to get it ..... just keep workin' it ..... once you figger out it ain't a left/right, conservative/liberal, Democrat/Republican thang, things will become much, much clearer .....

Problem mostly is, it is all too easy to focus on the minutiae and get sucked in .... and then you lose sight of the bigger picture .....

Of course, when they get you all to take sides, and argue against one other, then usually one is too occupied to see the wide angle view ..... all part of the program .....