Acts Of Insanity
Chaos Reigns, But Go Watch TV
"The administration and others are in un-chartered waters. You won’t be told this, but this is an experiment. Protecting banks, mortgages and other loans against loss is not the province of government. This is not protecting the people. A bank for toxic assets is not the answer either. It just passes debt from lenders to the public. Why inject funds into bankrupt banks and other financial firms? Just allow them to go under and prosecute their officers. They all committed fraud. Taking ownership stake is next to useless if the entities are insolvent. This is not nationalization; it is consolidated privatization under the Fed. Furthermore, the issuance of stock as part of a loan package dilutes the equity of current shareholders, who them sell driving the price of the shares lower. That could cause a run of the banks."
"The administration and others are in un-chartered waters. You won’t be told this, but this is an experiment. Protecting banks, mortgages and other loans against loss is not the province of government. This is not protecting the people. A bank for toxic assets is not the answer either. It just passes debt from lenders to the public. Why inject funds into bankrupt banks and other financial firms? Just allow them to go under and prosecute their officers. They all committed fraud. Taking ownership stake is next to useless if the entities are insolvent. This is not nationalization; it is consolidated privatization under the Fed. Furthermore, the issuance of stock as part of a loan package dilutes the equity of current shareholders, who them sell driving the price of the shares lower. That could cause a run of the banks."
posted by nolocontendere at 5:42 PM
0 Comments:
Post a Comment
<< Home