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Obama is urging fast-track treatment of legislation to give the government power to take over failing financial institutions that 'present a systematic risk to the financial sector or economy'...
This will be similar to the power that the FDIC has to seize failing banks and arrange for either their shut down or takeover by a prearranged buyer...
This is GREAT news!!!
It will go a long way towards making sure that our economy is never again at risk of being taken down by financial giants like AIG or CITI Group... These institutions will be able to be taken over long before they pose a credible risk to the economy... This of course means much tighter regulation and oversight of financial firms - but that is exactly what is needed...
Go Obama!!! Now THIS is the change that I voted for!!!
US Is Rushing to Get More Control Of Financial Giants - Yahoo! Finance (http://finance.yahoo.com/news/US-Is-Rushing-to-Get-More-cnbc-14699504.html?sec=topStories&pos=3&asset=TBD&ccode =TBD - broken link)
While there should definitely be some safeguards, this gives them too much power to do anything they like. It's too close to socialism. There's got to be a middle ground.
Giving them this power will easily turn into more corruption.
A positive step, and one that very much needs to be taken. In light of the idea that "Too big to fail" is the same thing as "Too big to manage", corporate megaliths are in large part disasters of various sorts waiting to happen. We have a very good and well-proven process for winding down the tangles of small and medium-sized institutions on the rather few occasions when they fail. We need an equivalent procedure for getting in the path of and winding down behemoths before they fall down and take the rest of the economy with them. We are presently having to make up an after-the-fact process for that as we go along. It would be much better if we had something set down beforehand that was well understood and available for implementation before such situations could come to arise to begin with...
Politicians are always doing too much or too little. In this case, I think they are doing way too much. All you need to do is regulate the leverage of liabilities to assets. Any financial or investment company should have a leverage ratio of no more than 12:1. There can not be any exceptions to this rule. If the government forces this, no company will ever get large enough to pose a systematic risk.
Last edited by Bostonian123; 03-20-2009 at 09:41 AM..
While there should definitely be some safeguards, this gives them too much power to do anything they like. It's too close to socialism. There's got to be a middle ground.
Giving them this power will easily turn into more corruption.
Obama is urging fast-track treatment of legislation to give the government power to take over failing financial institutions that 'present a systematic risk to the financial sector or economy'...
This will be similar to the power that the FDIC has to seize failing banks and arrange for either their shut down or takeover by a prearranged buyer...
This is GREAT news!!!
It will go a long way towards making sure that our economy is never again at risk of being taken down by financial giants like AIG or CITI Group... These institutions will be able to be taken over long before they pose a credible risk to the economy... This of course means much tighter regulation and oversight of financial firms - but that is exactly what is needed...
Go Obama!!! Now THIS is the change that I voted for!!!
US Is Rushing to Get More Control Of Financial Giants - Yahoo! Finance (http://finance.yahoo.com/news/US-Is-Rushing-to-Get-More-cnbc-14699504.html?sec=topStories&pos=3&asset=TBD&ccode =TBD - broken link)
Would you want the gov running the business you work for?
The governamnt really can't take over a business like AIG because its incapable of running a business like that, Faniie Mae and mac are simple in comparison and we all know how that turned out.What Obama really said was that we ned to allow businessses like AIG to be able to go into bankrupsy without the problems it would poase now.Notice that they didn't let the FDIC take over any of the nmajor banks for the same reason;small banks are easy.In fact the FDIC isn't big enough to even do one of the big institutions.The governam,nt didn't bail them out for no reason;they just could handle them.
Great, the Keynesian retards and DC high command get to run the show.
Get out of 401k plans and into physical assets while you can, even if it's just partly done.
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Great News: New legislation will allow takeover and dissolution of future AIGs
