New bank bailout could cost another $2 trillion?

[kentuck]

Does anyone question this?? Why not just give the fuckers $20 trillion and get it over with? It's all friggin' play money anyway.

It seems like the more they take, the less we get. We don't get any loans. We don't get any jobs. We get screwed. They are taking this money out of the economy and stashing it deep into their vaults and their pockets. They are either deathly afraid of the inflation monster or they are intentionally bent on sticking it to everyone that did not vote the way they wanted.

Call me paranoid or whatever, but I don't trust these mother fuckers.

http://online.wsj.com/article/SB123319689681827391.html

[w4rma]

1. The big banks should be liquidated. New banks will replace them.

Their balance sheets should be made public. I hope noone gives them any more "stimulus". Any business run like they have run theirs, with huge salaries and bonuses for incompetence, would not be in business any more.

[kentuck]

2. But the stupid fuckers in Congress aren't even asking questions !

There is no accountability at all. Whatever they want, no questions asked. This has "BAD NEWS" all over it, in my opinion.

[Zynx]

4. They have certainly asked questions about TARP and Treasury is improving openess.

Also, we may get common shares in these companies with the new plan. In other words, the government will get actual voting rights.

[kentuck]

6. And I have a Bridge in Brooklyn.

I'll be waiting for my common shares in these big banking companies. I'm sure it will be embossed in gold and suitable for framing.

[slipslidingaway]

11. With my tax dollars I would rather buy single payer heath care...

if I want common shares in the banks I'll buy them myself.

:)

[kentuck]

13. Amen

I agree with you.

[slipslidingaway]

15. Except that's too expensive....

I'm just in shock at the money that is flying out the door in such little time.

[leftstreet]

25. !!

:thumbsup:

[slipslidingaway]

28. And this post has 6 R's ....

:(


thanks

[mike_c]

3. the worst part is that the money is borrowed anyway...

...and the increased national debt is held, at interest, by-- you guessed it-- banks! No one seems to be stating the obvious here. The stimulus and the various bailouts are just digging our children's hole deeper.

[alittlelark]

9. The current stimulus package is not throwing $$$ down the craw

of the Big Banks..... It could actually work.


Unlike the b*sh 'stimulus package' that was passed with threats of martial law....they liked the quick 'don't read it, just pass it' OR ELSE legislative model.

I'm thrilled we have a 21st Century mentality in the WH now.

[mike_c]

21. could you please explain your reasoning...?

Are you suggesting the new stimulus money will not increase the national debt, i.e. be more borrowed money?

[dysfunctional press]

5. nationalize ALL home mortgages.

one low FIXED rate for everyone- 3-4%, based on the teerm of the loan- 15, 30, or 50 year mortgages.

[Oregone]

17. No shit!

Don't they understand that would instantly stimulate the economy by putting more money in people's pockets and building real wealth (via equity). As long as people are throwing away billions in interest to banks, they are indentured servants.

[anonymous171]

7. Can Obama station military personnel in the bank offices?

Might be a good reminder to the execs about who's paying the bills.

[kentuck]

10. And they will need new passports to get in the banks...

past the military guards at the gate.

[slipslidingaway]

8. K&R see this thread from yesterday...

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4923414&mesg_id=4923414

[kentuck]

12. As usual, I am a day late and a dollar short..

;-)

[slipslidingaway]

14. Not at all...Volcker mentioned trillions more would be needed

last week at the Geithner hearing.

:(

[G_j]

20. that's a serious habit! nt

[slipslidingaway]

27. :)) and I do not want to fund it. n/t

[Double T]

16. When the banks get done draining the Treasury the dollar won't be worth a cent.

Only way this problem is going to get solved is to have a civil revolution; the people vs. the corporations. american corporations, specially the financial institutions, should never be trusted; never trust a GD suit.

[Oregone]

18. The dollar is worth much more now than a year ago.

It doesn't quite work like that. The USD is a safehaven perceptually, despite this mess.

[Double T]

22. Not quite.

[Oregone]

38. Im lost

You say the dollar will soon be worth nothing due the banks draining of the treasury (an active and current event), and I point out relative to last year, it is soaring. In response, you go back to ancient history to prove it already is worth nothing? What point would that all prove. You are already fucked, the sky is falling, go put your head in the ground. As for me, Im enjoying a relatively strong dollar.

[Double T]

39. Dead dollar bounce is only an insignificant moment in time.

Flooding the market with more dollars will reduce the dollars buying power even further and will likely fuel inflation. Add trillions more in debt from stimulus and bailouts and see where we are. Currency traders are long the dollar while other currencies are weak at this time. Fabricated relative perceptions usually have nothing to do with long term reality which is specially true in this case. Ignore history and ignore trends and live for the moment. No wonder physical gold bars are becoming popular investments. Looks like you are lost.

[Oregone]

41. Yes, I am lost

I sold my gold coins, moved to a country where my USD is much stronger, and Im spending like crazy. Its the end of the world as I know it, and I feel fine.

Try not to chicken little out too much. Its all going to work out. The dollars under your mattress wont be on par with Zimbabwe's fallen currency next year.

[oldnslo]

19. Execute the goddam bank CEO's as part of the deal.

[DemReadingDU]

23. Schumer: bad bank estimates go up to $4 trillion

$4 TRILLION!

1/29/09
The cost of the government setting up a "bad bank" to buy up toxic assets from struggling U.S. banks could range as high as $4 trillion, according to some experts, Sen. Charles Schumer said on Thursday. "There are some estimates that if you do a full good bank, bad bank, that it ends up being as high as three trillion dollars, and that's a lot of money that could mess up lots of other parts of the financial system," Schumer told reporters. "I've talked to various experts. The estimates vary, from one to four," the Senate Banking Committee member said. Asked if banks need $2 trillion to $3 trillion in additional bailout funds, Schumer said: "No, not necessarily."

http://www.reuters.com/article/politicsNews/idUSTRE50S5PI20090129


$4 TRILLION!

[anonymous171]

24. Can we just nationalize them now?

[DemReadingDU]

26. Are we going to let them take our tax dollars for these ongoing bailouts!

or are we going to have a nation-wide strike, like the French...

1/29/09 French crowds march for job security, pay rises
Hundreds of thousands of teachers, nurses, factory workers and plumbers marched through French cities on Thursday to demand pay rises and protection for jobs. The demonstrations were the high point of a nationwide one-day strike called by France's eight main trade unions to try to persuade President Nicolas Sarkozy and business leaders to do more to help ordinary people overcome the economic crisis.

more...
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/29/AR2009012900350.html?hpid=moreheadlines

-----
When have hundreds of thousands of teachers, nurses, factory workers and plumbers marched through American cities?

When will hundreds of thousands of Americans protest the bailouts for the banksters!

Probably never.

Most Americans must not care that those bailouts are their hard earned tax dollars going to the wealthy.

[leftstreet]

29. !! Strikes hobble services in France !!

PARIS: Hundreds of thousands of workers went on strike Thursday across France, snarling transportation and closing post offices and schools in a sign of discontent with President Nicolas Sarkozy's response to the economic crisis.

"I'm tired and freezing after having to wait half an hour on the platform at my station this morning," Sandrine Dermont, 34, a secretary for a wholesaling company, told LCI television in the Paris station of Gare St. Lazare. "But I'm ready to accept that if it's the cost for a movement to defend our paychecks and jobs." Dermont added that she was planning to demonstrate during her lunch break.

Mass transit in the capital was in chaos, with service on suburban commuter lines reduced or nonexistent, and most subways and buses running well below normal frequencies. The Education Ministry estimated that 37 percent of teachers walked out. In Marseille, the country's second largest city, television showed buses crammed with commuters as subway service was completely interrupted.

http://www.iht.com/articles/2009/01/29/europe/france.1-418461.php

[terisan]

30. The French seem to have trade unions heads working for the people instead of govt.

[WI_DEM]

31. Give the $ to CC holders and mortgage holders and they can pay there bills

[taught_me_patience]

32. Kick!

I'm getting more and more angry about this.

[slipslidingaway]

33. Meredith Whitney: A Bad Bank Won't Save Banks

More at link...

http://clusterstock.alleyinsider.com/2009/1/meredith-whitney-a-bad-bank-wont-save-us

"Meredith Whitney today punches a big hole in the notion that creating a bad bank to buy up troubled assets will rescue our financial system. And it certainly won't prop up failing banks. The problems at banks are deeper and broader than just too many bad structured mortgage products on the balance sheets.

Financials have lots of loans that are likely to default.
They don't new have a revenue model to replace the old, broken one.
They won't start lending just because you buy the bad assets.

Here's the report from Meredith Whitney:

Talks of creating a "bad bank" are once again gaining momentum, and accordingly, we feel compelled to repeat and review our thoughts on the subject. In brief, simply removing "toxic" assets from bank balance sheets will not directly cause banks to increase lending. Lending standards have tightened dramatically, and there is an unavoidable restructuring of risk taking place. Such causes money to come out of the system and lending to contract, with or without this "bad bank" structure. Lower asset bases, higher credit losses, and bloated expense structures will continue to pressure banks' earnings power and capital creation. We remain cautious on the group..."

[slipslidingaway]

34. k n/t

[AzDar]

35. Fuck. No.

[kenny blankenship]

36. Nationalize them or let them collapse altogether

Of course, if the banking system collapses you'll get new banks. That's the "market solution". Which is true as far as it goes, but there's something else they don't tell you about that.

The new banks will be Chinese.

So does nationalization look so bad now?

[Junkdrawer]

37. $2 trillion here...$4 trillion there...pretty soon it adds up to REAL money....

Hell.

Handbasket.

[mmonk]

40. That's about what it would take due to this mess.

I agree with Kucinich's idea at this point. Use the Federal Reserve instead.

[kentuck]

42. Tell me why all banks have to be saved...

Not even one can go under? Not the ones that rob us. Not the ones thatwere criminal. Not the ones that had bad management. They must all be saved? The banking system would not collapse if CitiGroup were to go under or were nationalized. It would have no impact on my bank, except to maybe make it stronger.