Posted on 08/28/2011 9:21:23 AM PDT by elfman2
The most efficient solution would be mandatory substantial recapitalization—seeking private resources first, but using public funds if necessary. One option would be to mobilize EFSF or other European-wide funding to recapitalize banks directly, which would avoid placing even greater burdens on vulnerable sovereigns.
(Excerpt) Read more at imf.org ...
We already recapitalized European banks in Tarp 1 after those fools were going to tank thanks to buying our affirmative action mortgage lending instruments where government encouraged and removed the risks to give people who made 30k a year 300k mortgages.
The Fed encouraged them to buy our mortgage securities that were backed by the full faith and credit of American politicians. We were about to see a huge reset of the system that would have been much healthier in the long run but to avoid the short-term pain and loss of government revenue they mortgaged our kids futures with Tarp and subsequent bailouts.
How has that worked out so far?
Don’t shoot the messenger :-) But the amount they want now makes our other donations pale in comparison. And last time I looked, not a single Pubbie candidate was saying hell no.
Exactly...even if I agreed with bailing them out, it would have to be on condition that every officer and board member immediately resign, and be banned for life from the banking industry.
Reminds me of just before TARP, when the only people who understood the problem (the financial industry) enough to suggest a solution (to bail out the financial industry) were the ones (along with our elected representatives) that would bare most of the cost if it weren't spread out across the population. They just first had to convince the people who were most responsible for the crisis (our elected Representatives) that it would be in their best interest. Funny how the world works, so circular...
At the time, I suggested here that the FED could be given power to guarantee cash flows into select financial institutions so that the economy would function while other banks were dissolved and rechartered. I still think that's possible, but we'll eat the trillions that we put into them thus far.
I won’t. You are right, and I am sure more than enough Republicrats will go along with it. Afterall, they allowed the system to be created and Bush even trumpeted the housing numbers even as the system became more and more rotten.
The statute of limitations is almost up for this fraud and nobody is investigating who cooked the books. Hint, the easiest targets are the ones who got multi-million dollar bonuses just months before the system collapsed.
It is the biggest heist in the history of the world and nobody investigates. They make it all sound so complicated and complex that the sheeple can’t understand it but it was quite simple and effective. Too bad, Issa is not interested. Too bad, nobody in the GOP field is pledging investigations into what happened and charges where appropriate. Too bad, my kids don’t even vote and they will pay the biggest price of all for the fools we elected.
The rule of law in the U.S. no longer applies to everyone.
Thank you elfman2. You obviously understand what happened and what has to happen for us to save our Republic. Sadly, too few seem to understand or even be interested in a true accounting of what really caused the collapse.
I wish one, just one, GOP candidate would talk openly about this. I wish one, just one, powerful person in congress would talk about it. I wish one, just one, major media outlet would investigate this. If the American people truly understood what happened we might save the Republic. They don’t even see that the same people who created this mess are still in charge. My friends and neighbors don’t even seem to care. They just shrug, blame it on one party or the other, and feel like they can’t do anything about it.
All of the above.
Or spend it all, and then introduce means testing.
That's well reasoned. Considering that it's even less likely that a Republican congress can force austerity on our government under a Republican president than a Democrat one (knowing that Democrats will have nothing to lose by tuning everything into Wisconsin times ten if there are massive layoffs) I don't see a way out other than a taxpayer rev_lt. I bought the name MakeThemStealIt.com in 2009. Maybe it's time to actually build the site...
“I bought the name MakeThemStealIt.com in 2009. Maybe it’s time to actually build the site... “
I’m intrigued. What would be the main theme of the site?
It's far fetched now, but who knows when conditions change. It would need a simple and entertaining face that succinctly explains its two missions.
1) To rebel against wealth confiscation, first by collecting email addresses from people willing to withhold a specific portion of their taxes or pay them into escrow (not sure what's best) and publish them once a member threshold is reached.
2) To act as a financial crisis research center, allowing visitors to drill into budget data and play with various scenarios. Once a membership threshold is reached, they would be contacted and asked to provide more information in order to evaluate their credibility. Then at some financial threshold, the member names would be published and leveraged, in coordination with other organizations, for some specific political concessions.
All this would get very large and complex, and need support from people willing to have their lives turned upside down. Even safeguarding member data from organizations intent on seeing the effort fail would require help from people with a much greater understanding of security than me. I'm not yet even close to being committed to that. It's just a wild idea at this point.
IMF Chief Calls for Mandatory Substantial Recapitalization of Banks Using Money Taken from American Taxpayers *
You took the words right out of my mouth.
When I read the *New* Obama Stimulus plan, It sounded a lot like the old stimulus plan. You know, the one that we recently found out bailed out a lot of European banks. I find the timing of these two things extremely suspect.
I like your website name but it could also be theyalreadystoleit.com
I am frustrated that more FReepers don’t talk about the mortgage swindle. There are a few on here that do but it seems like a dead topic or yesterday’s news although we are still paying for it. Few seem to understand that the crisis provided the precedent for our central bank to bail out foreign banks.
Fast and Furious is scandalous but in the big scheme of things it is a flea in comparison to the mortgage swindle and the subsequent crony-capitalistic theft from our nation. The mortgage swindle rarely stays on the front page here but other potential scandals get big press. Of course, they fade away too.... what happened to the Black Panther case being dropped or Gerald Walpin? Walpin lost his case for reinstatement but nobody answered why the White House fired an IG that made a finding against an Obama supporter and fellow dem. The importance of the mortgage swindle is that it costs us all trillions of dollars that will have to be paid back. The other issues are nothing in comparison.
Perhaps history will tell the real story.
Perhaps history will tell the real story.
Thanks for your comments. I'm not sure how to measure the price of the mortgage swindle. If you know of something estimating it, I'd like to read it.
There is no way to truly measure it.
You have the direct payments to Freddie/Fannie. You have the indirect bank bailouts from TARP to make banks solvent after they took a bath on the toxic mortgage securities. It was not just our banks either since we bailed out others who were at risk of collapse due to their purchase of these highly rated securities.
I would argue that you could count a significant amount of all the damage across the economy as well as much of the government stimulus (graft at it’s worst) that followed. The precedent of “too big to fail” is extremely dangerous and the entire response to the housing collapse provided a framework to increase the scope of government control throughout the economy. I also believe it pushed us closer to a world bank/currency. It is obvious that central banks have now positioned themselves as the “people who will save us” when needed despite the obvious culpability in creating the problem.
Did you see? http://www.freerepublic.com/focus/f-news/2770179/posts and http://www.freerepublic.com/focus/f-news/2731857/posts
Those threads warmed my angry heart!
You summed it up with two key words in your statement: “over half”. When over half of the population can vote to take your hard earned money from you, and give it to themselves, that’s when things will start to go downhill.
Thanks for the links. I can’t finish your second reference now, but the link is added to my collection.
There are more covert subsidies. I think we own 69% of freddie and fannie. It’s probably over $1T in the read by now. http://www.bloomberg.com/news/2010-06-13/fannie-freddie-fix-expands-to-160-billion-with-worst-case-at-1-trillion.html
We owe 69% of them because if it were 70%, we’d have to included their debt in our national debt. They’re still buying almost every home loan at artificially low rates. Who else would underwrite 30 year loans at 4% with all the money printing we’ll need? Those loans, $6T in principle, will be paid back in dollars worth a fraction of today’s value? I’m not sure how to calculate that, but I think that if inflation is 10% yearly do to more TARP3+4+5..., the 30 year cost to us will be many more trillion.
There’s also Bernanke letting BofA write off $397B owed to F&F.
http://www.washingtonpost.com/wp-dyn/content/article/2011/01/03/AR2011010304495.html
Apparently that’s in exchange for their help pumping over $100B against their will into failing institutions like countrywide leading into the meltdown. Frontline’s Inside the Meltdown is a good review of that.
http://www.pbs.org/wgbh/pages/frontline/meltdown/view/
We’re probably liable for more of deals like that.
And that sums up why Constitutional government is critical. Once things that are unconstitutional and make sense are allowed to pass with “over half”, anything can pass that way. The Constitution prohibits that unless there’s”over 2/3rds”, but “over half” decided to just ignore that part.
And that sums up why Constitutional government is critical. Once things that are unconstitutional and make sense are allowed to pass with “over half”, anything can pass that way. The Constitution prohibits that unless there’s”over 2/3rds”, but “over half” decided to just ignore that part.
Unfortunately, we are stuck with the over half crowd, and not with the constitutional half. May God help us in this time of trials and tribulations.
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