Banks aren't controlled by any government entity. Mandates by a democratic congress loosened lending practices, created a housing bubble, and forced banks to charge too little interest for loans. I still blame banks for not charging higher interest rates to make these loans, however. Since you don't understand modern markets, the argument is falling on deaf ears anyway. I wouldn't put any of it on government, Republican or Democrat. There's plenty of blame to go around in every party, even the treasury and fed.
If you want further information, please re-read the post before you blather more bumper stick slogans. But don't get me wrong, you'd probably be surprised who I voted for.
On confidence, better communication is needed, as there doesn't appear to be any magic bullet coming.
Plan or no plan, the market voted. It was an utter failure. Banks got trashed every day since the announcement. The market has ZERO confidence in Geithner's ability to return stability to the banks. Unless the point of his plan was to create panic selling in the banks?! Hey mission accomplished Geithner!!
You have no idea what you are talking about. Who do you think created legislation such as the "Commodity Futures Modernization Act of 2000" without any committee hearings or a recorded vote . . . that allowed for Banks to play with CDS without any regulation or oversight? Does the name Phil Gramm ring a bell at all? Tom Ewing? Tom Bliley? Larry Combest? Jim Leach? Pete Fitzgerald? or Chuck Hagel? Stop with your ridiculous political bias. Get real.
"âThe president has really asked us all to focus on the medium term, the long term, not to focus on market movements on a day to day basis, thatâs not really the test weâre going to apply in judging whether this plan works,â Summers said." Short at will.
Word on the street (via a Virginian Senator) is they're already planning the next trillion dollar bailout. They're talkin' 3 trillion dollars when it's all said and done. And when the tax-and-spenders get done spending, you know what's coming - the bill. 3 trillion dollars is enough damn money to give every resident in Nevada a million dollars, and still have enough money for the S&L bailout.
Three top economists -- Nouriel Roubini, of New York University; Kenneth Rogoff, of Harvard University; and Nariman Behravesh, chief economist for IHS Global Insight -- warned at an event on Friday that if the banking system is not fixed correctly and quickly, the severity of the financial crisis will only worsen. The stimulus bill is "like giving a blood transfusion while the patient is still bleeding," Rogoff said at an event in Houston hosted by Cambridge Energy Research Associates. "If we're not going to fix the banking system at the same time, then it's just a temporary boost in the economy. We have simply not taken the proper decisive action with the banks." from thestreet.com
Bunch of BS ers, they are just looking for a job and/or publicity. They say Geithner's fix is wrong but they don't say how it should be done, because they have no idea either.