Category: Credit Crisis Bailouts
The analysis published under this category are as follows.
Thursday, February 12, 2009
Why the Bank Bailouts are Not Working / Politics / Credit Crisis Bailouts
By: MoneyWeek
800bn, 1trn, 2trn – just think of a number. Then double it. That seems to be the approach behind the latest batch of bail-outs.
To 'save' their economy, America 's politicians are churning out even more 'rescue' packages. All with more noughts attached. Now they've just "placed an eye-watering $2.3trn price tag on bailing out the US banking system", says The Independent's Stephen Foley , opening up "a second front in the battle to pull the country out of recession".
Read full article... Read full article...
Wednesday, February 11, 2009
Obama-Geithner Financial Crisis Recovery Plan from Hell / Politics / Credit Crisis Bailouts
By: Submissions
Michael Hudson writes: Tuesday's announcement of the Obama-Geithner recovery plan is basically an extension of the Bush-Paulson plan – yet more giveaways to financial insiders, with a view to concentrating the U.S. banking system into a cartel of just a few large banks. This is not altogether bad news for the still relatively healthy part of the banking system (healthy in the sense of still avoiding negative equity). Smaller, less troubled banks will be bought out by the large “troubled” ones, to the personal financial benefit of their stockholders. This cannot solve today's financial problem: the fact that the debt overhead far exceeds the economy's ability to pay. In fact, it will spread the distortions that the large banks have introduced, until the entire system presumably looks like Citibank, Bank of America, JP Morgan Chase and Wells Fargo. Read full article... Read full article...
Wednesday, February 11, 2009
Bankrupt General Motors Sucking Billions Out of the Tax Payer / Companies / Credit Crisis Bailouts
By: Ayn_Rand
General Motors, having sucked up $9.4 billion of taxpayer cash since Christmas, now desperately craves the remaining $4 billion authorized by President Bush for disbursement in February.Read full article... Read full article...
Tuesday, February 10, 2009
Obama Will Revive “Shadow Financial System” to Revive U.S. Banks / Stock-Markets / Credit Crisis Bailouts
By: Money_Morning
William Patalon III writes: To ease the ongoing credit crisis and get banks lending again, the Obama administration realizes that it first has to resuscitate the “shadow financial system” that's dominated by hedge funds and other large-scale private investors.
Surprisingly, two key ingredients of this turnaround formula will be structured investments, such as asset-backed securities, and leverage - the combination and poorly policed use of which acted as the accelerants that helped fuel the financial inferno that's now sweeping the globe in wildfire fashion.
Read full article... Read full article...
Saturday, February 07, 2009
J.P. Morgan's Abusive Excutives Bonuses / Companies / Credit Crisis Bailouts
By: John_Olagues
As readers will recall, J.P. Morgan received the first large bail-out from the New York FED of $55 Billion, guaranteed by Bear Stearns' worthless assets, to prop up its own liquidity position and buy Bear Stearns stock.
J.P. Morgan also recently received another $25 Billion in TARP payments from the Treasury.
Read full article... Read full article...
Wednesday, February 04, 2009
Bailout for the People: Dividend Economics, Basic Income Guarantee- Part2 / Politics / Credit Crisis Bailouts
By: Richard_C_Cook
Key Discovery of the 20th Century: Dividend Economics
Read full article... Read full article...
Wednesday, February 04, 2009
Bailout for the People: Dividend Economics and the Basic Income Guarantee / Politics / Credit Crisis Bailouts
By: Richard_C_Cook
Prepared for a Presentation at the 8 th Congress of the U.S. Basic Income Guarantee Network and 2009 Eastern Economics Association Annual Conference Sheraton New York Hotel and Towers New York, N.Y., February 27
The existing monetary system is not free enterprise, and it is not capitalism. It is cancer.
Read full article... Read full article...
Wednesday, February 04, 2009
Obama Plans Financial Triage for Bad Bank Troubled Assets / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
The Obama administration, led by Geithner, is proposing a triage of bad ideas for troubled assets. The Washington Post has the story in Bank Rescue Would Entail Triage for Troubled Assets .
The Obama administration's emerging rescue plan for the banking system would amount to financial triage, with the Treasury Department playing the delicate role of deciding which of the trillions of dollars in troubled assets plaguing the economy to buy, guarantee or leave in the hands of banks, sources said. Read full article... Read full article...
Sunday, February 01, 2009
So, Who's Going to Bail Out the Consumer? / Economics / Credit Crisis Bailouts
By: Joseph_Toronto
Since the consumer is now and forever the great engine of all economic activity and growth representing approximately 70% of GDP, doesn't it make sense to re-liquify the balance sheets of the consumers/taxpayers who are arguably in worse shape than any bank, corporation or local/state government? Read full article... Read full article...
Saturday, January 31, 2009
"Bad Bank"- How to Mitigate the Losses / Politics / Credit Crisis Bailouts
By: Submissions
Under the "Bad Bank" scenario, the taxpayers will own these Troubled Assets which are comprised of "Toxic" mortgages.
In effect, the US government (taxpayers) will be bearing the loss on these “toxic” mortgages. The growing concern is that these losses will continue to materialize as defaults increase with the projected 8 million foreclosures expected over the next four years. It seems that the key to this crisis IS THE BORROWER!
Read full article... Read full article...
Friday, January 30, 2009
Market-Based "Bad" Bank Solution / Politics / Credit Crisis Bailouts
By: Paul_L_Kasriel
Robert D. (Bob) Laurent was the smartest person I have ever encountered. I had the privilege of learning from and working with him at the Chicago Fed. Bob had a knack for coming up with market-based solutions for all kinds of political-economic challenges. One example that comes to mind is at what value to assess residential real estate for tax purposes. Bob's recommendation was to let the owner of the real estate place the value on his property with the proviso that the taxing authority could purchase the property at the owner-decided value. This would deter owners from placing too low a value on their properties. Because rational property owners would have no desire to pay excessive taxes, they would not place too high a value on their properties. Read full article... Read full article...
Friday, January 30, 2009
Financial Crisis Bad Bank "Deals of the Week" / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
Inquiring minds are reading about "Deals of the Week" in Five Things You Need to Know: Banana Republic . Let's take a peek. 1. Change Comes Hard
This morning I was rudely greeted by two bizarre news headlines; bizarre because they were written about roughly the same thing, yet presented two diametrically opposed thoughts.
Read full article... Read full article...
Thursday, January 29, 2009
Why The Aggregator Bank Will Fail / Politics / Credit Crisis Bailouts
By: Submissions
The beauty of capitalism is that the system lets the weak perish and the strong thrive. This is the main reason why the system has worked so well since its inception. Wall Street is a cutthroat place - one of the few places in the civilized world where human beings allow pure unadulterated Darwinism to work. But how can a capitalist system function properly if we are propping up insolvent banks and rewarding those who made the wrong decisions? Many people like to associate nationalization with socialism, but I see it differently. Nationalizing banks is just controlled Darwinism. It's a way of exterminating the dead banks in the least harmful way. Read full article... Read full article...
Thursday, January 29, 2009
U.S. $2 Trillion Bank Nationalization Proposal from Geithner / Politics / Credit Crisis Bailouts
By: Mike_Shedlock
Barney Frank once again is leading the way in a mad rush to do something, even though his track record in such cases is a perfect zero. Please consider Lawmakers Weigh Bad-Bank Plan
Top U.S. House and Senate Democrats are taking a wait-and-see approach to the Obama administration's potential plan to create a "bad bank" to buy up toxic assets, though there remains a sense of urgency for policy makers to put something in place fast.
Read full article... Read full article...
Tuesday, January 27, 2009
Economic Stimulus for Who? / Politics / Credit Crisis Bailouts
By: Dr_Ron_Paul
This week the House is expected to pass an $825 billion economic stimulus package. In reality, this bill is just an escalation of a government-created economic mess. As before, a sense of urgency and impending doom is being used to extract mountains of money from Congress with minimal debate. So much for change.Read full article... Read full article...
Monday, January 19, 2009
Britain's Bailout of Bankrupt Banks Grows by Another £100 Billion / Companies / Credit Crisis Bailouts
By: Mike_Shedlock
A new bailout of British lenders will take the government stake in Royal Bank of Scotland to 70% following the Treasury's £100bn lifeline .
Britain's bank bosses are on standby to be called to Downing Street today or tomorrow to hear details of the new rescue plan.
Read full article... Read full article...
Sunday, January 18, 2009
Fed and Bank of England Shell Games to Bailout Insolvent Banks / Companies / Credit Crisis Bailouts
By: Mike_Shedlock
The US banking system is insolvent. I gave 25 reasons on Wednesday, July 23, 2008 in You Know The Banking System Is Unsound When.... 1. Paulson appears on Face The Nation and says "Our banking system is a safe and a sound one." If the banking system was safe and sound, everyone would know it (or at least think it). There would be no need to say it.
Read full article... Read full article...
Tuesday, January 13, 2009
Stimulating The U.S. Economy All the Way to Rock Bottom / Economics / Credit Crisis Bailouts
By: Dr_Ron_Paul
With attention turning to the next big economic stimulus package, questions are still swirling about our economic troubles. How did we get here? How do we get out? As usual, Washington has all the wrong answers. According to many politicians, we got here by not spending enough, not consuming enough, and not regulating enough. Read full article... Read full article...
Tuesday, January 13, 2009
Credit Crisis Bailouts Debt Fueled Money Printing Flood / Economics / Credit Crisis Bailouts
By: Money_and_Markets
Mike Larson writes: How much is $1.186 trillion — or $1,186,000,000,000, written out the long way?
• It's more than the inflation-adjusted cost of the Vietnam ($698 billion) and Korean Wars ($454 billion).
Read full article... Read full article...
Sunday, January 11, 2009
Too Big to Fail? / Politics / Credit Crisis Bailouts
By: Rudy_Avizius
A mortal threat to the nation's economy and national security - As our economy continues to decline and we have bailouts, loans, and guarantees that now total into the $trillions of dollars, let's examine who is getting these funds and why. These funds are not going to the community banks, mom and pop stores, or other small enterprises. They are going to huge conglomerate corporations that have been deemed “too big to fail” and therefore represent a threat to the nation's financial security. These conglomerates are the result of acquisitions and mergers over the last few decades that had the effect of reducing competition and consumer choice. In the end this has the ultimate effect of raising prices which would by definition increase profit margins. Read full article... Read full article...