Ok, he's against bailing out home buyers who were dumb, irresponsible, greedy, et cetera. Okay, I get that point of view, philosophy, the Ayn Rand thing. But how can he support using taxpayer dollars to "beef up" (euphemism for bail out) regional banks? To simpify, he thinks it's okay to take my money and give it to an irresponsible bank but not to an irresponsible home owner? I mean the guy is smart about the bond market and all that, but I just don't get the philosophical consistency of his arguments, and makes me wonder if it's just anti-populist class prejudice.
He's saying get the regionals to lend money, and keep them well capitalized, as the big, zombie banks that are sucking up taxpayer dollars are a lost cause, and won't lend or do anything but keep sucking up more dollars that won't end up back in circulation.
When your bank goes under do you expect your deposit back from the FDIC? Or did you exhibit due diligence and only open an account with a conservative bank who gave you the LOWEST CD rate in America? If I were a Legislator I doubt I'd be bailout inclined but when I hear Whiner Nation with their insured accounts-the ULTIMATE bailout-I have to laugh at the duplicity. Toxic National Bank only had to offer a CD rate .25% above anyone else and they attracted all the money they could handle. Now Toxic is toast. And the "taxpayers"-the same exact people holding insured Toxic CD's-are horrified at the word bailout. Question: If IB blew up today and the losses far exceeded the resources of the SIPC-how many of you would take the loss of your accounts with a grain of salt? Exactly. You'd be screaming and shouting that someone had better help.
WEDNESDAY is D-DAY. Geithner will unveil the details of his Stress Test plan, which could include forced mergers, more infusions, and/or extremely troubled institutions being Nationalized for a certain period of time with a board of trustees being put in place made up of bank managers. The Roubini "Game Plan" is now unfolding.
Santelli is a screaming 2 faced idiot-thats how. Its the traders like santelli and all their freemarket garbage philosophy that created the exotic dervatives markets like cd swaps and subprime loans and then raped the economy and america.Wall st has always been a con game.Whats happening now is repeated time and again...the dot com implosion,s+l,the depression, the 1907 crisis..all synthetic creations and scams made by the same group and minset of wall st today and yesterday.And it will happen again as long as wall st exists.Wall st is nothing more than a slick sales job selling snake oil 90% of the time.Just read up on livermore.
Thats the problem of big ego. Not being able to admit you are wrong or that your "invisible hand" philosophy that you have espoused for the last 30 years is a disastrous failure and is destroying your country before your very eyes. Wall st raped america. and santelli is on wall streets side.
Yes, Wall Street rapes America -- that's what Wall Street and bankers do, and only someone naive or an idiot thinks otherwise. But who did they rape here? A stupid, consumerist slut of a nation that believes the corporate cheerleading (and finger-wagging follow-ups to clear their culpability) on CNBC? (Maybe the new Fairness Doctrine will allow for some socialist and anti-consumerist perspectives.) Anyway, blame should be equally shared. Bail outs for everyone or bail outs for no one!
The "invisible hand" has been mostly closed, allowing for only entry of an oblong object, and moving up and down rapidly, for quite some time now.
This thread probably doesn't belong in trading. The banks need to be bailout to improve market & investor confidence. Although this recession pales in comparison to the great depression, the lack of govt. support in the financial system worsened the great depression.