Posted on 02/24/2009 5:44:15 PM PST by Kaslin
Banking: The federal government may be getting ready to nationalize one or more of America's major banks. The reason often cited for taking such drastic action is "systemic risk." Are our banks really in such dire shape?
Yes, some banks are struggling right now with big losses on real estate and their securitized loan investment portfolios. But roughly 90% of America's banks are in decent shape.
But you don't have to take our word for it.
As the chart in the next column shows, overall lending at U.S. commercial banks was up 5.7% in January from last year to $9.85 trillion, a record. Since 1990, average annualized monthly lending growth has been 7.3%. In other words, we're just below normal.
Commercial and industrial loans, a key gauge of business access to credit, were up 8.4% in January — though down from the roaring 20%-plus growth rate of early last year. Consumer loans rose 10.1%.
In short, bank lending is at record levels. That's a data-based fact.
So why all the talk of nationalization? Especially after reading what the U.S. banking system's five regulatory agencies — the U.S. Treasury, the Federal Deposit Insurance Corp., the Comptroller of the Currency, the Office of Thrift Supervision and the Federal Reserve — had to say after they met on Monday.
(Excerpt) Read more at ibdeditorials.com ...
Let them put hundreds of billions of your tax dollars in their pockets, and don’t tell them to stop.
My understanding is that the banks are technically insolvent. Now. That is why they want to nationalize them. They are going to whether we like it or not. They have too much of those level three assets sitting off their balances sheets, and the banks control this country now. O is just the puppet.
Simple...the Dems need to vacuum the loan files (ahem ...Bribes) before the next election cycle!!!
1) Pass a law to make it illegal to create CDO's, CDS's, or MBS's in future; or at least for any corporation that has at least one office or one employee in the USA or is listed on any of the US markets.
2) Require all outstanding CDO's, CDS's, and MBS's to be unwound and closed/cancelled within a month.
By doing that we will have eliminated a lot of the uncertainty that exists. This will cause an initial shock to the system, but should allow us to go forward with clear eyes.
That is the most useful thing they could do. The real question is, why not? Why AREN’T they doing this? Or even calling all CDO’s null and void? Why not?
There has to be a reason that they don’t, and it certainly isn’t a good one. I fear it is so that they can rape this entire country, give the 0, puppet in chief, powers of the oval office to socialize what remains, and kick back and act like the kings they imagine they should have been.
I suspect that their buddies in the banking business are lined up to hit the big one, or even ones. Since they pay for the campaigns of the elected officials, they aren’t going to stop the game now. Not good for the political class.
The whole discussion is absurd! What are the Freepers who are so opposed to this really supporting? The Fed is a private cartel of banks that has monopoly right to create money out of thin air.
It’s the Fed that needs to be ‘nationalized’, not Citi. To whine endlessly about the bailouts to banks without calling the question on the Federal Reserve itself is missing the point. Big time.
This is my experience: Our banks split two ways: bad ones stoppe lending on their own or by order of bank examiners; good ones kept on lending.
Right now more banks are coming back to lending, again. All our bankers are expecting a sunny spring.
Plutocray leads to kleptocracy. We are bailing out privileged entities - Billionaires, banking friends, Democrat donors, Saudi princes, etc.
Good insight on your part. Much ignorance on the part of others, though.
Bad idea. Stop watching so much television and do some research. Govt. meddling caused all this.
Reduce regulation and taxes. Stop worrying about acronyms you or I have no influence over. Your prescription will through out the good with the bad.
Because you would have to return to a cave-man-like lifestyle if they did.
If someone or some corporation has the financial wherewithal to purchase millions of dollars worth of mortgages for investments purposes then they should purchase dozens or hundreds of whole mortgages. They can manage the risk by buying a variety of mortgages in different markets.
There is no good in allowing people to buy insurance on other peoples' assets. A person or corporation should only be able to insure their own assets. CDO's allow companies to purchase insurance on other peoples' assets from non-insurance companies who do not have the financial wherewithal to back their promises.
That is pure insanity!
Why not?
If someone or some corporation has the financial wherewithal to purchase millions of dollars worth of mortgages for investments purposes then they should purchase dozens or hundreds of whole mortgages. They can manage the risk by buying a variety of mortgages in different markets.
Not my business what people do with their money.
There is no good in allowing people to buy insurance on other peoples' assets. A person or corporation should only be able to insure their own assets. CDO's allow companies to purchase insurance on other peoples' assets from non-insurance companies who do not have the financial wherewithal to back their promises.
I presume you mean with an insurance company right?
That is pure insanity!
Negative. Everyone knows pure insanity vaporizes at room temperature. It is possibly rarefied insanity which has a longer period. Most likely it was simple refined insanity which can last a lifetime.
Do you really think it is a good idea for someone you never met to buy insurance on your house? What if thousands of people bought insurance on your house? Don't you think there would be a really good chance that your house might just accidentally catch on fire?
If you don't then you are very naive.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.