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The more I am reading these days, the more I am finding out that most of these "experts" don't know what they are talking about.
We probably could have survived banks failure a couple of years ago despite the "chicken little" experts who said it would sink the country. It wouldn't have been easy - but are we any better off now?
You can not compare what worked for a country with a population smaller than the city of Indianapolis with what should have been done with the economic powerhouse that is the United States.
Some paid back in full. Some paid in part - the government owns 20% of Citigroup, which only paid back some of their loan.
Last I checked, smaller banks were having issues paying back the loans.
Regardless, these are private institutions that should not have been bailed out.
We taxpayers rewarded the banks bad business practices by absorbing their losses and giving them easy money with which to purchase smaller banks and pay themselves bonuses.
The too big to fail, just keep getting bigger and a very unhealthy precedent has been set.
You can not compare what worked for a country with a population smaller than the city of Indianapolis with what should have been done with the economic powerhouse that is the United States.
Population and size of the economy has nothing to with what economic principles works and what doesn't.
We taxpayers rewarded the banks bad business practices by absorbing their losses and giving them easy money with which to purchase smaller banks and pay themselves bonuses.
The too big to fail, just keep getting bigger and a very unhealthy precedent has been set.
So we should put the regulations and oversight back to stop them from doing the same thing again, right? If I have a beef with the Obama administration, that's a big one. They should have been screaming and yelling for financial reform.
I simply LOVE when leftists are forced to support the bailing out of what they would have called the 'evil banks' simply because THEIR guy is in the Whitehouse...
It is SO funny.
And of course bailing the banksters out has done little to help....that is even funnier.
By the way - do you know how they are making money to pay back the government? Through the stock market. Banks have been responsible for much of the activity in the market.
They get government money - put the money in the market - stocks rise - they make profits - they remove the money and repay the government.
How else do banks make money? By lending to individuals and businesses and collecting interest. They are not doing much of that right now. If nothing else, they made a bunch of loans to people who can't pay back.
There is no risk for the banks to do what they are doing. Quantitative easing (or monetizing debt) is another way to get money to the banks to inflate the stock market.
So this is the whole racket. The economy is tanking, but no one sees it. Why? The gov't is funneling money to the banks (by selling US debt) in order to prop up the market. Why? Because if the markets tanked, people would panic especially since many of middle America's life savings and retirements are in the stocks. So the banks get the profits from the stocks. The government keeps peace of mind amongst the masses for the time being in proclaiming that the economy is fine. Both parties are happy - but this can't last forever.
So we should put the regulations and oversight back to stop them from doing the same thing again, right? If I have a beef with the Obama administration, that's a big one. They should have been screaming and yelling for financial reform.
Mostly,the banks bad business practices were made possible by the feds loose money.
Easy money leads to bad investing and poor decision making.
Get rid of the meddling fed and the safety net for failing and you'll see much more careful lending practices and economic stability.
Typical liberal circle of life, when the bureaucracy falls down on the job and regulation fails, just keep adding more until you have theoretically taken the whole thing over.
Mostly,the banks bad business practices were made possible by the feds loose money.
Easy money leads to bad investing and poor decision making.
Get rid of the meddling fed and the safety net for failing and you'll see much more careful lending practices and economic stability.
Typical liberal circle of life, when the bureaucracy falls down on the job and regulation fails, just keep adding more until you have theoretically taken the whole thing over.
I think you're underestimating the human greed factor, and the risk some people will take to make more money. I don't think there was any guarantee of a safety net when the banks did what they did.
So we should put the regulations and oversight back to stop them from doing the same thing again, right? If I have a beef with the Obama administration, that's a big one. They should have been screaming and yelling for financial reform.
Regulations are in place and are not being enforced.
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