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Blackhatjack (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:40 AM Original message |
Explain this logic to me? How is letting banks fail and consumers go belly up a good thing? |
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MannyGoldstein (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:42 AM Response to Original message |
1. Ask Herbert Hoover - He'll Tell You How Well It Works |
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ananda (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:53 AM Response to Reply #1 |
8. hate |
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MannyGoldstein (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:59 AM Response to Reply #8 |
11. Yep [nt] |
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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:01 AM Response to Reply #8 |
13. I think you are right |
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xchrom (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:46 AM Response to Original message |
2. i certainly can't see the logic of expanding this pain |
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Blackhatjack (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:46 AM Response to Original message |
3. But so far all the $billions are going to the big boys, and not to the smaller banks/consumers... |
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PSPS (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:54 AM Response to Reply #3 |
9. The housing market SHOULD be in a free fall |
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daa (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:00 AM Response to Reply #9 |
12. You are correct |
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defendandprotect (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 02:19 AM Response to Reply #9 |
43. THIS time if government bails out the banks . . . WE OWN THEM . . . |
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Kittycat (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:47 AM Response to Original message |
4. CEOs get to retire with their bonuses & unbrellas? |
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Birthmark (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:48 AM Response to Original message |
5. There are two answers to that. |
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PSPS (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:49 AM Response to Original message |
6. Because doing otherwise amounts to public funding of a criminal enterprise. |
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ThomWV (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:02 AM Response to Reply #6 |
16. That too! Good point. |
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El Pinko (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:51 AM Response to Original message |
7. Because passing the debt on to the government only makes the government more insolvent |
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Earth_First (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 09:58 AM Response to Original message |
10. It isn't just the so-called market experts calling for economic failure... |
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El Pinko (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:41 AM Response to Reply #10 |
22. The failures will happen regardless of the bailouts. |
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girl gone mad (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:54 PM Response to Reply #22 |
38. Thank you El Pinko. |
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greyghost (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 07:01 PM Response to Reply #22 |
40. Indeed. They are simply printing more WORTHLESS money which |
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gravity (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:01 AM Response to Original message |
14. It will create in economic collapse |
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ThomWV (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:01 AM Response to Original message |
15. It punishes economic inefficency and so the remaining system is stronger |
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Homer12 (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:10 AM Response to Original message |
17. All this shows is that an un-regulated "Free Market" |
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BR_Parkway (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:28 AM Response to Original message |
18. Part of me wonders if it wouldn't be easier to start from scratch |
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Xenotime (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:34 AM Response to Reply #18 |
19. Exactly. I imagine a new country with a different constitution... |
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ThomWV (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:37 AM Response to Reply #19 |
21. Really? I immagine our country where our Constitution actually means something. |
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glowing (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:56 AM Response to Reply #19 |
23. Have you read the original.. Its pretty good.. Its just not ever followed. |
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defendandprotect (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 02:19 AM Response to Reply #23 |
44. Except for the deals with the elites, with the males, and with slave holders --- !!! |
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bicentennial_baby (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 12:42 PM Response to Reply #44 |
50. It's really interesting when you read it as an Economic document, |
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defendandprotect (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 04:08 PM Response to Reply #50 |
56. Is that still permitted . . . . . ???? !!!! |
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mondo joe (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 11:00 AM Response to Reply #18 |
24. How many middle and lower income people are you willing to sacrifice in the crash? |
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BR_Parkway (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 08:44 AM Response to Reply #24 |
47. You're assuming they haven't been sacrificed already? Their once |
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mondo joe (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 03:03 PM Response to Reply #47 |
51. Are you seriously asking what's left to sacrifice? Everyone who's still hanging on - |
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BR_Parkway (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 06:01 AM Response to Reply #51 |
57. No, my original question was would it be easier to start over with |
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earth mom (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 02:31 PM Response to Reply #18 |
27. Are you fucking kidding?! Do you really think the powers that be will let the people |
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BR_Parkway (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 08:49 AM Response to Reply #27 |
48. Sorry if it wasn't clear - I was talking about the financial system crashing |
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pitohui (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:41 PM Response to Reply #18 |
34. only if you're under 30 |
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NashVegas (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 10:35 AM Response to Original message |
20. Because the Market MUST Correct Itself |
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MilesColtrane (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 11:58 AM Response to Original message |
25. Thanks to FDR the money in your bank account is insured (up to $100,000) should the bank fail. |
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uppityperson (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 12:42 PM Response to Reply #25 |
26. I've a question about that insurance by gvt. Where does gvt get that money from? |
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MilesColtrane (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 03:25 PM Response to Reply #26 |
28. Banks pay premiums to the FDIC for the mandatory insurance. |
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Uncle Joe (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 03:39 PM Response to Reply #28 |
29. So if the customers pay the premiums, the government is essentially bailing itself out |
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MilesColtrane (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:34 PM Response to Reply #29 |
32. That's what happened during the savings & loan crisis, because the FSLIC itself... |
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uppityperson (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:00 PM Response to Reply #28 |
31. So the gvt saves the money paid by the banks taken from the customers to give back to the customers |
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MilesColtrane (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:43 PM Response to Reply #31 |
35. Well, the choices aren't pretty. |
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Uncle Joe (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:56 PM Response to Reply #35 |
39. Yes but wasn't that Hoover's solution and also check out post #20 on this thread. |
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Generic Brad (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 08:44 PM Response to Reply #25 |
41. $100,000 Deposit Insurance Was Great in the 1930's |
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MilesColtrane (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 12:39 PM Response to Reply #41 |
49. The insurance is actually for all of your acounts, up to $100,000 per bank. |
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defendandprotect (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 02:23 AM Response to Reply #25 |
45. Well...that's a bit of a problem right THERE . . . the accounts were supposed to be |
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Igel (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 04:53 PM Response to Original message |
30. Here's one rationale. |
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Mike03 (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:39 PM Response to Original message |
33. Taking a wild guess: Moral Hazard |
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MilesColtrane (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:48 PM Response to Reply #33 |
37. Unfortunately that seems to be the Fed's policy. |
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girl gone mad (1000+ posts) Send PM | Profile | Ignore | Sat Mar-15-08 05:45 PM Response to Original message |
36. These bailouts are not for the benefit of normal people.. |
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jberryhill (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 01:05 AM Response to Original message |
42. What's "the right prescription" for an oxycodone addict? |
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defendandprotect (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 02:25 AM Response to Original message |
46. The Fed has to be STOPPED from printing money --- |
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Greyhound (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 03:24 PM Response to Original message |
52. There is a great difference between covering deposits and bailing out banks. |
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Fire Walk With Me (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 03:49 PM Response to Original message |
53. Contemplate "Bush as Nero" and you'll get a better idea. |
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AngryAmish (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 03:59 PM Response to Original message |
54. In economics it is know as the problem of "moral hazard" |
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Blackhatjack (1000+ posts) Send PM | Profile | Ignore | Sun Mar-16-08 04:06 PM Response to Original message |
55. Keep in mind that businesses will fail as well as foreclosures, bank failures and unemployment rise |
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napi21 (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 06:12 AM Response to Original message |
58. I think letting them fail would cause a run on all banks. THAT would hurt |
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natrat (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 07:38 AM Response to Original message |
59. it is surreal how this seems to be unfolding on a time table |
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natrat (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 07:47 AM Response to Reply #59 |
62. they really are killing the whole system off |
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leftofthedial (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 07:40 AM Response to Original message |
60. how America could ever have let repukes run things |
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NashVegas (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 07:46 AM Response to Original message |
61. We're Never Going to Legislate These Corporations Away |
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RB TexLa (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 07:50 AM Response to Original message |
63. There has to be consequences for breaking underwriting rules |
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newportdadde (1000+ posts) Send PM | Profile | Ignore | Tue Mar-18-08 08:00 AM Response to Original message |
64. Because we might run out of wheelbarrows otherwise? |
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