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Location: where you sip the tea of the breasts of the spinsters of Utica
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All Big US Banks Must Go to Fix Crisis: Economist
Friday January 30, 2009, 11:46 am EST
The creation of a government bad bank to buy toxic assets is necessary, but then the government will need to take control of and restructure major banks to fix the system, one economist at the World Economic Forum in Davos told CNBC.com.
"They have to do a bad bank," Harvard Economics Professor Ken Rogoff said. But "if that's all they do then it's idiotic."
Institutions like Citi (NYSE: c) and Bank of America (NYSE: bac) will have to go, boards will have to be fired and equity stakeholders will be wiped out, Rogoff said.
The plan could mirror the one Sweden implemented, where all troubled banks were nationalized, their balance sheets were cleaned up and the good parts of the businesses were sold to the private sector.
That solution was "much cleaner," he said......... (article continued at All Big US Banks Must Go to Fix Crisis: Economist - Yahoo! Finance (http://finance.yahoo.com/news/All-Big-US-Banks-Must-Go-to-cnbc-14208794.html - broken link) )
That isnh't going to ahppen. I can't even eimagine what would ahppen if the federal governamnt took over the banks. Just look at Freddie and fannie mae.
Actually the "re-constitution" of banks that seem to have badly 'screwed the pooch' like BofA & Citi is much different than saying "all big banks must go". Other than the headline, it does NOT say that Rogoff is advocating that position. In fact, none of his papers suggest that either: Project Syndicate
The "bank of bad assets" is something that STILL has quite a bit of merit. I think if the various parties can come together and work that out a lot of good would happen.
Further, if the clowns that ran Citi and BofA into the ash heaps were put out of work we might all be better off for it. I can imagine several methods that would be fairly democratic in dumping the current BofDirectors from this instutions, finding new 'investor class" leaders to step-in, with a mandate that anyone that they kept would be subject to all kinds of scrutiny by the DofJ and other law enforcement type investigators.
Nothing wrong with that. After all in Nevada and New Jersery the folks that want to run CASINOS have to be investigated by a gambling control authority -- that risks these jokers took were {are?} far bigger...
I wonder if this move would restore confidence or destroy it?
either way, the lizard part of my brain wants them to fire everyone at banking institutions who acted negligently, maybe shame them in public, give people the opportunity to throw rotten tomatoes. Televise it in HD.
Connect the dots here folks. The banks are insolvent. They can't make loans unless they get money from the fed or from a bailout. If we let the banks collapse so would the dollar.
How long have we been predicting a dollar collapse? Years now. We predicted that it would be replaced by the AMERO, or the north American currency.
The globalists heavily want the US, Canada and Mexico to merge into one. A unified currency will do the job sooner or later.
Location: where you sip the tea of the breasts of the spinsters of Utica
8,297 posts, read 14,164,711 times
Reputation: 8105
I dunno, killer ..... I suppose that's less tinfoil than I would have judged it a few months ago, but still ..... Canadians wouldn't be interested ..... only Mexico would want something like that.
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