2001-2008: Dissent is the highest form of patriotism.
2009-2016: Dissent is the highest form of racism.
2017-? (Probably): Dissent is the highest form of misogyny.
We have a government in place today that refuses to confront real issues with real solutions. 207 days of Dear Leader's Reign of Error and Tiny Tim is still no closer to getting those toxic and defaulting loans off bank balance sheets, is still no closer to resurrecting the Glass-Steagall divisions between investment and commercial banking, and can only offer up more bailouts, more bank failures, and more of Helicopter Ben Bernanke's magic printing press to somehow make it all good again.
It infuriates because we have been here before. The S&L Crisis of the 1980s, research so insightfully in Akerloff and Romer's 1994 paper "Looting", is the history we have been compelled to repeat. It infuriates because we have the example of Japan's "Lost Decade" as a cautionary tale against allowing toxic assets to linger on bank balance sheets while banks perform accounting tricks to show healthy profits and then fail.
Banks have been allowed to play fast and loose with the rules, have over extended themselves, are looking to the taxpayers to pull their behinds out of the fire--and Dear Leader and Tiny Tim have managed to do nothing but print money and cut checks.
No whining? No sir, no whining at all. Just plenty of much-warranted outrage. (at the banks and at Dear Leader).
[ame="http://www.scribd.com/doc/13579076/Looting-Akerlof-Romer"]Looting - Akerlof, Romer@@AMEPARAM@@/docinfo/13579076?access_key=key-1wg2u7yzurrxsguidyks@@AMEPARAM@@13579076@@AMEPARAM @@key-1wg2u7yzurrxsguidyks[/ame]
I'm with you on the banksters. I was glad to have voted for Obama and hope he can pull us through. Unfortunately, I think he started off badly continuing the bailouts. I hope he will look at Theodore Roosevelt’s Presidency — I see the same problems, and ol' Teddy got it right.
Teddy Roosevelt’s Trust-busting policies:
Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Someone has to push the banks to put their toxic assets on the table, and put together a plan for disposing of those assets in an orderly fashion. Letting bank balance sheet wither and rot from asset contagion is definitely not the answer.
2009 - 77 and counting.
The bailout has led to the real dip into failures, obvious collapse of the financial system and the new fascist system growing out of the collapsing one. Well, Don calls it state capitalism, - but what is the diffirence, when neither is American?
Last edited by justone; 08-17-09 at 07:38 PM.
Unfortunately, little effort at resolution has been applied following TARP, and that development will likely nurture moral hazard. At the same time, scant attention is being given to the issue of increased industry concentration following the failure of smaller/medium-sized banks (which amplifies the "too big to fail problem"), much less a strategy for directly addressing the "too big to fail" issue.
"State capitalism" is the term economists use to describe the present increased role of government in industry. I use the term consistent with its generally accepted practice.
As noted previously, so others don't confuse my position, I favored preventing the collapse of the nation's financial system. However, I also favored resolving the zombie institutions, including but not limited to Citibank and Bank of America; breaking up AIG, selling off its viable parts, and winding down the rest (incredibly enough a significant share of the destructive derivatives positions have yet to be wound down); breaking up the GSEs and privatizing the viable parts, etc. I remain concerned about the partial nationalization of numerous financial sector firms.
I also opposed federal intervention in the automobile industry and felt bankruptcy was the better option. No systemic risk was involved. Recognizing that the federal government was going to intervene, I stated that under such circumstances, bankruptcy should be attached to such intervention.
Similarly, on grounds of an absence of systemic risk, I do not support the sometimes-rumored bailout of the airlines. The airlines have an overcapacity problem.
You don’t have to be so defensive. I don’t blame you, I don’t attack you. I justnoticed a bigger picture in the numbers you were so kind post.
You posts are greatly appreciated by me even if I argue to you and prove that you miss some points. You wouldn’t like to see your thoughts not to be challenged, would you? I definitely notice that you have been incorporating some of my thoughts in your view, and I see it as a demonstration of your abilities.
Your position had been well expressed by you and well respected by me. You say that TRAP could be OK, if the measures you (and I) have been reiterating so many times were implemented. I disagree with you that TRAP was needed, if the measures you (and I) have been reiterating so many times were implemented. I may be wrong about TRAP. Now I am saying that it does not matter at this point. I know for sure that if your plan – TARP+listed measures,- was implemented it would not be (even if you are wrong about TRAP) as destructive and damaging to America as Obama’s actions, I even think it would have a net positive result, and may be we would already be pulling out of the hole, we may be could avoid falling into the hole.
I just want to remind you that we have well passed the point, that your plan has NOT been implemented and it is NOT going to be implemented, the hazards you and I have been warning about have not been avoided but met belly straight on sword, and there is nobody here to hear our warnings about the course straight on the iceberg of healthcare, Medicare, cap and Trade. The overwhelming majority has won and we have passed the point of return. You and I lost, as the matter of the fact; it does not matter anymore who was right or was wrong – you or me.
I don’t have time to look up, but if you can link me to one of your latest posts – about Hospitals. You did not inted and thus you used somewhat loose terms, but you made a sentence over there. If I have time I would like to go over it. That sentence of yours lists most fundamental, unbreakable rules, laws of price forming and economy at all, - they are as fundamental as the 4 rules of Newton in science. Whatever is a social formation these laws are as effective and active as in any other formation. Generally my approach has been based on these fundamental laws. I never had time or chance to formulate them, now you have been the only one justone who has listed them and referred to them.
Last edited by justone; 08-18-09 at 09:56 PM.
Last edited by stekim; 08-19-09 at 08:32 AM.
Wow. Am I awesome or what?
For the second consecutive week, a very large bank was closed. This evening, the FDIC closed Texas-based Guaranty Bank with $13 billion in assets. Guaranty is the 4th largest bank to fail in the wake of the collapsed housing bubble. To date, 109 banks have failed, including 81 this year. Cumulative assets held by the failed banks has increased to almost $465 billion.