Of course it is... pay up or we take our marbles and go home. That is why they are already complaining they won't use the bailout plan, because it limits compensation. You would think if they were in a live or die situation they would choose death over not getting their $30 mil bonuses while the bank holds on to them for a little bit?
The banks are scared that when the untradable assets on their books start trading again (ala Leh CDS at auction today) they will not have enough capital. They don't know what the price of those assets is right now so they have to assume the worst or face the same fate as leh etc. Once they have some comfort level with what their real liabilities are when pricing of these assets starts happening they will then stop hoarding so much cash and start lending again (assuming that the pricing of these assets end up being better than the worst case scenarios that the banks are projecting). You can't lend when you don't know what your own liabilities are and you can lend to someone who you know doesn't know what their liabilities are either.
Yes, and the odds are that lots of the CDSs are worth far less than the value they are being carried...
They need to "recapitalize". George Orwell would be proud. In plain english...we blew all the money we had on bullshit and now we need some more money. You, the taxpayer have been elected. Adding insult to injury, it was our money to begin with which they blew on their own orchestrated scam, and it we be our money that bails them out so that they can once again "loan" it back to us. The mob only dreams of running this type of extortion.
I've always thought of the US Gummint as the Biggest Financial Criminal in the history of civilization... and this dealy HAS to be the best scam yet...
LOL ok, keep blaming Democtrats for everything, then getting upset that the Republicans don't serve up to your expectations. No wonder you spend most of your time frustrated without any direction. Let me put it this way, you're just scratching the surface.
You are obviously SOOOO full of it. Didn't anyone ever tell you, "The Big Dog Eats"? As soon as you defended the DemoCraps, you outed yourself as one who TALKS OUT HIS ASS.. with his hand out.
As a very very smart alternative historian says, when mentioning these types of quotes: "They don't mind telling you their plans, in fact, they are happy to do so"
Why don't you go on another Bush tirade, because it is his semi-retarded brain that came up with all of this, lol. Go call Greenspan & Bernanke idiots while you are at it, cause they really do have that much control over the monetary system, as proclaimed by angry uninformed ETers. Like I said, your amazing "revelations" is stuff I have known for years. And as I have said, you are just scratching the surface. Lose the hate, the ego & your pre-madonna attutude if you want to learn more.