Stress tests: Let 'em fail. by SignyM

REAL WORLD EVENT DISCUSSIONS

Stress tests: Let 'em fail.

POSTED BY: SIGNYM
UPDATED: Saturday, May 9, 2009 10:46
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VIEWED: 1868
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Friday, May 8, 2009 5:11 AM

I believe in solving problems, not sharing them.

The government already protects bank depositors. Why are we NOW trying to protect shareholders and note-holders too?

Isn't capitalism all about assuming RISK? You get the big bucks because you assumed a risk? Whoever said that investors HAVE to break even?

Bank of America (NYSE: BAC) -- $33.9 billion
Wells Fargo (NYSE: WFC) -- $13.7 billion
GMAC -- $11.5 billion
Citigroup (NYSE: C) -- $5.5 billion
Regions Financial -- $2.5 billion
Suntrust -- $2.2 billion
KeyCorp-$1.8 billion
Morgan Stanley -- $1.8 billion
Fifth Third -- $1.1 billion
PNC Financial -- $0.6 billion

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We should have strapped him into a glider, filled it nose heavy w/ explosives, and dropped his Allah lovin' ass into a large, empty field. After which, release wild boars into the area so they could make good use of his remains. Now THAT's justice.- rappy

Yeah, that's what Sheikh Issa said. Seems you both have a lot in common.- signy

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Friday, May 8, 2009 6:03 AM

GINOBIFFARONI

If the system was allowed to collapse, in a decade or so it would be considerably stronger for it.

By propping it up in this way, I think they are only delaying the inevitable.

But I suppose this is for the benefit of the " old money " types.

The only investments I would try to protect would be retirement savings plans,

RRSPs in Canada, 401K I think in the US.

Some folks don't have the time to wait for the system to sort itself out.

" They don't hate America, they hate Americans " Homer Simpson

Lets party like its 1939

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Friday, May 8, 2009 6:07 AM

RUE

I have a vote and I'm not afraid to use it!

I agree. Let 'em fail.

(Though I have to say - BofA was induced to purchase Countrywide last summer by the Bush administration. It may have been a business move they otherwise wouldn't have taken. Maybe they should get the purchase price, if they haven't already.)

***************************************************************

Silence is consent.

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Friday, May 8, 2009 6:16 AM

KWICKO

"We'll know our disinformation program is complete when everything the American public believes is false." -- William Casey, Reagan's presidential campaign manager & CIA Director (from first staff meeting in 1981)

I still can't figure out what the "test" is in all this. Is it graded on a pass-pass curve? What's a passing grade, an 80? And then you find out they're using a scale from 80 to 100...

My wife calls this plan "No Bank Left Behind". I think she nailed it.

Mike

Build a man a fire and he'll be warm for a day...
Set a man on fire and he'll be warm for the rest of his life.

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Friday, May 8, 2009 6:30 AM

SIGNYM

I believe in solving problems, not sharing them.

Conservatives and libertarians are strangely silent on the topic....

Is that 'cause you all agree?

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We should have strapped him into a glider, filled it nose heavy w/ explosives, and dropped his Allah lovin' ass into a large, empty field. After which, release wild boars into the area so they could make good use of his remains. Now THAT's justice.- rappy

Yeah, that's what Sheikh Issa said. Seems you both have a lot in common.- signy

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Friday, May 8, 2009 7:34 AM

RUE

I have a vote and I'm not afraid to use it!

"No Bank Left Behind"

Yeah. Wall Street too.

The whole banking/ mortgage crisis could have been solved so much better, cheaper, faster, by having the feds put together a refinancing program for homeowners.

It's the biggest thing I have against Obama so far - where his loyalties lie. Obviously it's with big money, and big business. I suspect he likes health insurance companies over actual health care reform.

***************************************************************

Silence is consent.

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Friday, May 8, 2009 7:39 AM

CHRISISALL

Quote:
Originally posted by SignyM:
libertarians are strangely silent on the topic....

What? Oh, yeah, I agree.
Bank collapse would irritate the wealthy, and we can't have THAT.

The laughing Chrisisall

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Friday, May 8, 2009 7:41 AM

SERGEANTX

Quote:
Originally posted by SignyM:
Conservatives and libertarians are strangely silent on the topic....

silence? after an hour? I don't currently, but I think some of us have jobs. :)

Anyway, I've been quite clear I think. They should be dealt with just like any other bank failure. The quicker the better.

SergeantX

"Dream a little dream or you can live a little dream. I'd rather live it, cause dreamers always chase but never get it." Aesop Rock

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Friday, May 8, 2009 7:43 AM

SERGEANTX

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Friday, May 8, 2009 10:37 AM

KWICKO

Quote:
Originally posted by SergeantX:
Anyway, I've been quite clear I think. They should be dealt with just like any other bank failure. The quicker the better.

Sounds pretty close to the way one deals with a broken-legged horse. Is that what you're getting at?

If so, I agree.

BANG!

Done.

Mike

Build a man a fire and he'll be warm for a day...
Set a man on fire and he'll be warm for the rest of his life.

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Friday, May 8, 2009 11:22 AM

FREMDFIRMA

I swear, it reminds me of a casino where the high rollers get their money back if they lose, and the casino takes it from ME - at gunpoint.

And you can imagine my opinion on that is so potentially vicious I ain't even about to post it here.

I DO know that "everybody wins" is a damn unsustainable policy to begin with - one reason I am none too fond of our crack brained version of capitalism and never have been.

Been doin a lil research on Anarchist Catalonia, and happen to find it damn interesting that despite all the other tensions at the time, EVERY GOVERNMENT ON THE PLANET considered them such a dire threat that, despite how puny they were, no effort was spared to destroy them utterly.

"How DARE they not listen to us!"

Amazing that something every bit as simple as that, scares the everliving shit out of the powers that be, isn't it ?

But really, that's ALL it's ever gonna take, all it does take, because in that tiny little seed, lies a damned bitter harvest for them if it ever germinates - and you can bet they damn well know it.

-Frem

Interesting Linkage: Ethel MacDonald's Story.

http://en.wikipedia.org/wiki/Ethel_MacDonald

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Friday, May 8, 2009 12:56 PM

SIMONWHO

The thing is, we've had this before. An overhyped stock market, people vastly over-extended, a series of financial hiccups and suddenly a majority of banks were facing the end. 1929-1931 the Federal Reserve let them fail. The end result was a decade of poverty, desperation and despair, combined with the US Government having to spend unprecedented amounts of money anyway.

Those who do not remember history...

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Friday, May 8, 2009 3:33 PM

SIGNYM

I believe in solving problems, not sharing them.

At the time we did not have the FDIC. People lost their savings as well as their investments.

----------------------
We should have strapped him into a glider, filled it nose heavy w/ explosives, and dropped his Allah lovin' ass into a large, empty field. After which, release wild boars into the area so they could make good use of his remains. Now THAT's justice.- rappy

Yeah, that's what Sheikh Issa said. Seems you both have a lot in common.- signy

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Friday, May 8, 2009 5:02 PM

FREMDFIRMA

Umm, after the FSLIC and losing my savings ANYWAY, I don't put too much trust in the FDIC, mind you.

http://en.wikipedia.org/wiki/Federal_Savings_and_Loan_Insurance_Corpor
ation

We've been HERE before, remember.
http://en.wikipedia.org/wiki/Savings_and_loan_crisis

I keep what I own where I can REACH it, cause after having the doors slammed in your face by the bank and getting flipped the bird by the Gov agency supposed to cover you, one can imagine I don't exactly trust em no more, neither one.
http://en.wikipedia.org/wiki/Old_Court_Savings_and_Loans

Never again, no way.

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Friday, May 8, 2009 11:02 PM

BADKARMA00

I'm staunchly conservative, almost to the point of being libertarian. As far as the banks go, they are a business, correct? If I owned a business, and it failed due to my poor management of it, I seriously doubt I could expect a government bailout. Let them fail.

I do realize that their failure would create no small amount of havoc. And that people would suffer from it, I have no doubt.

However, as I see enourmous debt mounting in the effort to 'stabilize' the banking 'industry', I am convinced that when this spending catches up to us, and it will, then they're going to collapse anyway, and we'll be significantly weaker than if we simply allowed them to fail now, and worked to rebuild.

A good deal of our trouble, I believe, comes from the idea that 'guberment' can fix anything with enough money. One look at the educations system should be enough to convince anyone that this line of thinking is wrong, IMO. Another prime example is the 'war on drugs'.

We all have to live within our means, and that includes the government. There are certain things that the federal government is responsible for. Those things should be done first and foremost. Taking money from me to give to a bank that has so poorly managed it's assets that it's in the crapper isn't on that list, so far as I'm concerned.

But that's just me.

Bad_karma
Great and Exalted Grand Pooba, International Brotherhood of Moonshiners, Rednecks, and Good Old Boys.

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Saturday, May 9, 2009 6:05 AM

FREMDFIRMA

Well, see - this is a lot like welding shut the blowoff valve of a steam engine, sure, you'll stop the blowoff, for a while, temporarily...

But sooner or later - kaboom.

And now we're paying for three previous generations having done that, with the option to maybe, maybe, shuffle the damage onto one more.

My nieces are part of that generation, and either way are gonna suffer for it, whether we take the blow now and soften it for them, or whether we increase it's inevitable damage by shoring it up with methods that have become paper thin and ever more dangerous.

Look around you, see those kids ?

Do you really feel good about the idea of making THEM pay for OUR sins, and the sins of our forefathers ?

How do you think they are gonna feel about it ?

Remember that some day your life and care may be in their hands, that this government may be, this whole nation.

Just my thoughts on it.

-Frem

It cannot be said enough, those who do not learn from history, are doomed to endlessly repeat it

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Saturday, May 9, 2009 10:46 AM

BADKARMA00

Exactly Frem. No matter what they do now, someone will have to pay later.

Bad_karma
Great and Exalted Grand Pooba, International Brotherhood of Moonshiners, Rednecks, and Good Old Boys.

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