Quote Originally Posted by BmanMcfly View Post
No, it doesn't matter to save more or less of them... but it would be better to save the RIGHT ones.

Yes, they are saving those 'too big to fail', and everyone else is 'too small to save'. The worst part about this is that those local banks that are being allowed to fail are the ones that are actually relatively healthy banks... the monster 'zombie banks' (as I've heard a few economists call them), that are more or less houses of toxic assets, assets that exist only on paper and aren't worth the money they are not printed on.
Actuallyt the small banks that are failing are costing the FDIC a lot of money. They typically have non performing loans (ie bad ones far higher then thier capital base. The FDIC has had trouble selling more then a few, and have had to guarantee the debts of the others. Overall the FDIC is allowing plenty of small banks to continue to operate when in past years they would have been shut down.

You are right though that this is a continuation of policies... and essentially proof in itself that the presidency is more like a 'relay' where they just pass the baton, and not really competing factions fighting for the best interests of the people they represent.

At taxpayer expense... you forgot about that... you also neglected that american taxpayers are bailing out foreign financial institutions as well...

Remember : If we can agree that these banks were really 'too big to fail', then you must also agree that everyone else is 'too small to save'??
Yes in the AIG bailout foreign banks were also given plenty of money (tens of billions of dollars)

I dont agree that the banks were too big to fail. They were to big to allow them to stop operating as that would impact the US economy to a huge level. They were not to big to go bankrupt, and have shareholder, bondholders lose a ton of wealth. Not to mention depositors who would and should have only had the FDIC guaranteed levels given to them. The way the FDIC is handling the small banks is the way the government should have handled Citi, Goldman AIG etc.