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HEADER_RACK
Heavy Crude
Joined: Feb 15, 2007
Posts: 435
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 Posted: Wed Jul 02, 2008 7:47 am Post subject: Paulson Calls for Process to Liquidate Failing Firms |
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Bloomberg
| Quote: | | We need to create a resolution process that ensures the financial system can withstand the failure of a large complex financial firm,'' Paulson said in the speech excerpts distributed by the Treasury to reporters traveling with him in London. |
Think they are worried about something?
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There will come a day when we would have wished to do a little evil for a greater good. |
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Cynus
Intermediate Crude
Joined: Aug 13, 2004
Posts: 585
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| Posted: Wed Jul 02, 2008 7:50 am Post subject: Re: Paulson Calls for Process to Liquidate Failing Firms |
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Whatever fancy name Paulson ends up with, I'll still call it by its true name: a taxpayer bailout.
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One of these now am I too, a fugitive from the gods and a wanderer, at the mercy of raging Strife.
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http://apoxonbothyourhouses.blogspot.com |
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Eli
Fusion
Joined: Jun 18, 2005
Posts: 3765
Location: In a van down by the river
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| Posted: Wed Jul 02, 2008 8:07 am Post subject: Re: Paulson Calls for Process to Liquidate Failing Firms |
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Cynus is exactly right.
He is talking about setting up a Gov. Trust to take all the bad debt and let the big boys walk away. Just like the Resolution Trust Corp. did back in the saving and loan crisis. |
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HEADER_RACK
Heavy Crude
Joined: Feb 15, 2007
Posts: 435
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| Posted: Wed Jul 02, 2008 8:14 am Post subject: Re: Paulson Calls for Process to Liquidate Failing Firms |
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I agree. I don't believe in a taxpayer bailout either.They are pushing hard for one because they know we are on borrowed time.
Fortis is probably right and we are only days to weeks away from a meltdown. They are clawing and scratching as fast as they can to try and avert it. I say they got themselves into this. let the chips fall where they may.
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DantesPeak
Expert
Joined: Oct 23, 2004
Posts: 5501
Location: New Jersey
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| Posted: Wed Jul 02, 2008 8:17 am Post subject: Re: Paulson Calls for Process to Liquidate Failing Firms |
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| Eli wrote: | Cynus is exactly right.
He is talking about setting up a Gov. Trust to take all the bad debt and let the big boys walk away. Just like the Resolution Trust Corp. did back in the saving and loan crisis. |
Yes, I'm expecting one new government entity for banks/brokers and one to bail out mortgage payers.
I'm guessing politicians are afraid to propose the bailout bills before elections, but are prepared to do so when they get the excuse they need.
The NY Times reported Monday that the government assumed 20% of all mortgages in the 1930s depression, so we have have a long history from the 1930s and 1980s of bailing out mortgages.
Please note what I think will happen is maybe not what I want to happen.
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It's already over, now it's just a matter of adjusting.
Last edited by DantesPeak on Wed Jul 02, 2008 9:09 am; edited 1 time in total |
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roccman
Fusion
Joined: Apr 27, 2007
Posts: 4262
Location: The Great Sonoran Desert
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| Posted: Wed Jul 02, 2008 8:57 am Post subject: Re: Paulson Calls for Process to Liquidate Failing Firms |
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| DantesPeak wrote: | | Eli wrote: | Cynus is exactly right.
He is talking about setting up a Gov. Trust to take all the bad debt and let the big boys walk away. Just like the Resolution Trust Corp. did back in the saving and loan crisis. |
Yes, I'm expecting one new government entity for banks/brokers and one to bail out mortgage payers.
I'm guessing politicians are afraid to propose the bailout bills before elections, but are prepared to do so when they get the excuse they need.
The NY Times reported Monday that the government assumed 20% of all mortgages in the 1930s depression, so we have have a long history from the 1930s and 1980s of bailing out mortgages.
Please note what I think will happen is not may not be what I want to happen. |
I have said repeatedly for well over a year that there will be one national bank...
My money is on JP Morgan.
Seems like tin foil is forging itself into structural steel nowadays.
Amero anyone? or is that still tin foil in the steel larvae stage?
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"There must be a bogeyman; there always is, and it cannot be something as esoteric as "resource depletion." You can't go to war with that." Emersonbiggins
"... hope is a rotten-thighed whore" Niko Kazantzakis
We are going back to roccland - me |
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Kingcoal
Expert
Joined: Sep 29, 2004
Posts: 2330
Location: Pennsylvania, USA
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| Posted: Wed Jul 02, 2008 10:20 am Post subject: Re: Paulson Calls for Process to Liquidate Failing Firms |
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| Quote: | | In a speech in London today, Paulson identified a legal gap that leaves unspecified how to deal with failures of companies that don't take deposits, such as investment banks. |
In other words, he wants to be able to transfer money from the Treasury to investors who made bad bets. The moral theory behind FICA is that a person puts their money in the bank as a place to keep it safe and doesn't earn much return on it so they are worthy of the government using money from the Treasury to compensate them for losses in the event of an emergency because putting money in the bank shouldn't be considered a risky investment.
In this case, Paulson wants to compensate greedy risk takers for their losses because they are "to big to fail." What a load of horse$hit. We live in moralless times.
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"That's the problem with mercy, kid... It just ain't professional" - Fast Eddie, The Color of Money |
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