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That Bloomberg article was as close to content free as you can get.
Of course it was. It’s was reporting only that Buffett was “in contact” with Biden officials. That’s all it was meant to do, and nothing more because details of the conversations are not public. Of course, one could always read between the lines and determine that this contact is in and of itself important, for many reasons. Stay tuned I guess.
Geez, I could post that water is wet and people would dismiss it for lack of details. SMH.
I would agree with the majority of posters here in that the rescue HAD to be made to head off a domino effect of collapsing banks taking us back to Armageddon 2008.
I find it interesting that Sheila Bair - the highly respected former Chairwoman of the FDIC - disagrees with that view.
Quote:
Originally Posted by biafra4life
That being said, if it's agreed that the banking system is too important to allow to fail, then I dont see any other choice but to nationalize it.
There is another approach.
The US banking system is highly splintered. There are about 4,500 commercial banks and savings institutions operating in the United States, according to the Federal Reserve. This number includes both large national banks and smaller community banks. In addition to commercial banks, there are also about 1,100 credit unions operating in the United States.
Contrast that with Canada, which has about 35 banks.
The alternative to our current system - with thousands of too-small-to-protect-themselves banks - is a much smaller number of mega banks, each of which would have sufficient assets and sufficient constant regulatory review that the US economy would no longer be at risk.
The downside to that is many rural jurisdictions - with Congressmen who vote - would oppose that. They like their little po-dunk banks that understand local issues.
Quote:
Originally Posted by biafra4life
We cant keep "privatizing the profits but socializing the losses" of the banks. If they are that critical, then they either should be nationalized or the regulation ramped up considerably (If I recall, increased regulation and oversight was exactly what was done after 2008, only to be rolled back by Trump).
The bold above is a standard Democratic talking point. It also is false. There was a Bi-Partisan bill reducing the compliance burden on mid-sized banks. Everyone thought that made sense, as the issues facing big money center banks are very different from issues facing a small bank in Iowa that deals with tractors and feed lots.
Last edited by moguldreamer; 03-18-2023 at 07:57 PM..
I would agree with the majority of posters here in that the rescue HAD to be made to head off a domino effect of collapsing banks taking us back to Armageddon 2008. That being said, if it's agreed that the banking system is too important to allow to fail, then I dont see any other choice but to nationalize it. We cant keep "privatizing the profits but socializing the losses" of the banks. If they are that critical, then they either should be nationalized or the regulation ramped up considerably (If I recall, increased regulation and oversight was exactly what was done after 2008, only to be rolled back by Trump).
No. Not even close. Simply allow banks to forgo, "mark to market" pricing rules on long bonds directly or indirectly.
You obviously didn’t bother to click on the link before posting.
I tried it - it didn't open. That's on me I have Fred Flinstone level internet some weekends.
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