Comments on: Next Bank ‘Bailout’ Could Cost $2 Trillion

By: 12 Gauge Rage

12 Gauge Rage — Fri, 30 Jan 2009 13:04:31 +0000

This is why I’ve always kept my money in a credit union. I don’t hear any stories of those institutions failing.

By: Liberals Demise

Liberals Demise — Thu, 29 Jan 2009 23:57:06 +0000

Is everyone smoking crack?
Not 1 copper cent should be shifted to the banks.
F ‘em all!!

By: pdsand

pdsand — Thu, 29 Jan 2009 23:50:36 +0000

“The aim is to encourage banks to begin lending again and investors to put private capital back into financial institutions.”
Just a cursory perusal of the headlines of the financial pages of any newspaper covering the seemingly endless strings of government efforts to inject a boatload of cash into the financial systems all over the world that have tried this over the last year will show on every single account that the exact opposite has happened. The banks put the money away in a rainy day fund, or use it to shore up their balance sheets, but they dang sure don’t lend it.
Also the stock market always tanks the day that the government intervenes, because the massive government borrowing leads to inflation which will make investors run for the hills while the value of that country’s stock market and currency experiences shell-shock over the gazillion dollar price tags of all this foolishness. It has happened again and again and again.
So why would the smartest person in the room, the sainted Obama think that anything else other than what has happened every single time before will be the result this time? And when it’s on a much grander scale that will REALLY send our currency and inflation into a series of backflips?
The only reason I can think of is that he just wants to pass a piece of legislation that uses the number “TRILLION”. That way when he asks for a few billion for this or a few billion for that later on, it’ll be nothing compared to the gargantuan federal budget, and nobody will even care. And heaven forbid a single Republican should vote for this bill, because then no Republican will ever be allowed to raise a peep about the size of a budget or the federal government in general for the next century. “Well y’all voted for that 2 TRILLION dollar bailout bill, and it only went to banks and your white construction worker buddies and included a bunch of tax cuts for the wealthy, so why do you care if we spend 350 billion on slavery reparations? I know you don’t have a problem with spending money, you just don’t like black people.”

By: Odie44

Odie44 — Thu, 29 Jan 2009 15:37:48 +0000

The map is not a surprise, being NYC, LA and Charlotte are the “corporate centers of most large banks” and agree – doesnt tell us where the money is going.

What would be interesting is a map layover of mortgage defaults, foreclosures – which will paint a truer picture of who is directly effected.

BUt then again, $350M is “missing” and there are zero caveats for banks to actually utilize the moneys specifically to inject liquidity to the credit markets and or pay down mortgages through a) longer terms, b) lower or freeze interest rates and c) waiver of penalities or extend foreclosure proceedings.

SO we are left with bilions going into a void directly to banks and billions being considered in direct funds from the gov to mortgage holders who need “help”

Again – less those who couldnt afford a mortgage plus those folks and companies flipping houses, sitting on mortgages they cannot pay for and it will equal a true snap shot of the mortgage issue.

I have zero sympathy for someone getting a mortgage over their head and zero sympathy for people who thought buying 3-8 mortgages in the hopes of “flipping them for a profit” Both are investments they couldnt afford, akin to selling everything to buystocks agt $10 that now trades at $1

Too friggin bad.