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Oh, I don't know. VW did great (and still does great) with a majority government ownership (now it is down to just 25% though) while Renault boomed under government ownership, as did Volvo, and Jaguar. Come to think of it so did Toyota in the early post WW2 period.
and yet I'm accused of being a conspiracy theorist when I say the bailouts is a step towards the government taking over private industry. The above is another step in that direction and Oerdin made the argument for it.
There are any number of banks who are not subject to TARP
Nationally chartered banks (not state chartered banks)? My understanding is that Paulson, Bush's treasury secretary, got them all in on the TARP because if they didn't all go in then any bank which did would be admitting they were about to fail and this would cause a run by investors on the stock insuring it did fail. That's why Paulson literally rounded up all the top execs into one room in the Fed and told them all they were talking part no matter if they liked it or not.
This cap would only apply to nationally chartered banks because those are the only banks the Fed oversees. (Not counting the office of thrift management which is a totally separate entity)
Nationally chartered banks (not state chartered banks)? My understanding is that Paulson, Bush's treasury secretary, got them all in on the TARP because if they didn't all go in then any bank which did would be admitting they were about to fail and this would cause a run by investors on the stock insuring it did fail. That's why Paulson literally rounded up all the top execs into one room in the Fed and told them all they were talking part no matter if they liked it or not.
This cap would only apply to nationally chartered banks because those are the only banks the Fed oversees. (Not counting the office of thrift management which is a totally separate entity)
Nationally Chartered - I can't speak to every state but, we have several here that, although nationally chartered, did not receive any funds - they did not need them
and yet I'm accused of being a conspiracy theorist when I say the bailouts is a step towards the government taking over private industry.
Oh, you are. Do you really think the right wing Paulson wanted to do a bailout? He was faced with, as Fed Chairman Ben Bernanke said, "The complete destruction of all of America's major financial institutions with 48 hour unless he acted". Both Paulson and Bernanke are right wingers and neither wanted to do this, you can even see it on their faces when they announced the TARP, but they literally saw no choice. It was either this or the complete end of the major nationally chartered banks.
These banks had $1.2 trillion in assets and they lost $3.5 trillion last year with more loses to come when CDOs and CDSs start getting activated. These company are Zombies. They're dead with more debts then assets by a 2-3 to 1 margin. Even with the $800 billion TARP funds they're still $1.5 trillion under water just from last year but the sad fact is you can't let them go bust because they literally are to big to fail and with all those CDSs if anyone goes down they'd take out most of the International banks with them. So long Japan, EU, China, not to mention the US. All of their financial systems would collapse and, as we learned in the depression, that's the last thing you ever want to happen.
Nationally Chartered - I can't speak to every state but, we have several here that, although nationally chartered, did not receive any funds - they did not need them
Interesting. What are their names and let's look up to see where they are chartered?
So let them fail. Many businesses and banks throughout history have failed and others have come and taken their place. You don't reward failure and expect success. As soon as government money went to these businesses the federal government began talking about some form of control of these businesses. Congress and our President have no business experience and yet they feel they can run a corporation in addition to a nation. Before you cheer for Congress to run banks you might want to take a step back in time to see how they ran their own bank back in the 80s. GM should give back their bailout funds, file chaper 11, kick out the UAW, drop several divisions from their lineup, and start over again rather than let Congress begin dictating how to run a worldwide corporation.
Read about the great depression and how the bank failures were the biggest part of turning a recession into a depression. The big problem with bank failures is banks loan more money they they hold in deposits so every time a bank fails you have a contraction in the money supply. During the great depression all the bank failures resulted in a 42% reduction in the money supply literally strangling the life out of the economy.
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