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2009-09-21 21:52:52
Macbeth
Banned
+2,444|5873

Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government. Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.
http://www.nytimes.com/2009/09/22/busin … .html?_r=1
That is actually pretty sad, do you think the banks are going to give the government some weird restrictions on how they operate or use the funds?
2009-09-21 21:54:43
SEREMAKER
BABYMAKIN EXPERT √
+2,187|6855|Mountains of NC

fkn indian givers
https://static.bf2s.com/files/user/17445/carhartt.jpg
2009-09-21 23:35:10
PureFodder
Member
+225|6572
Where are all of the 'the government is trying to take over and socialize all the banks' crowd now?
2009-09-21 23:40:39
AussieReaper
( ͡° ͜ʖ ͡°)
+5,761|6440|what

And the banks get their money from the population.

You might as well just increase taxes. lol
https://i.imgur.com/maVpUMN.png
2009-09-21 23:54:22
Spark
liquid fluoride thorium reactor
+874|6962|Canberra, AUS

AussieReaper wrote:

And the banks get their money from the population.

You might as well just increase taxes. lol
But that would be inherently absolute evil!
The paradox is only a conflict between reality and your feeling what reality ought to be.
~ Richard Feynman
2009-09-22 01:03:01
Dilbert_X
The X stands for
+1,817|6393|eXtreme to the maX
The govt borrows from the good banks to underwrite the bad banks.
Makes sense really, providing the bad banks have to pay somehow.
Fuck Israel
2009-09-22 02:20:21
JahManRed
wank
+646|6915|IRELAND

Nothing new here. The government has been borrowing from private companies for 90 years. IE The Fed Reserve.
2009-09-22 09:31:48
Red Forman
Banned
+402|5687

Macbeth wrote:

That is actually pretty sad, do you think the banks are going to give the government some weird restrictions on how they operate or use the funds?
erm... FDIC is a government corporation,  they get money from the banks, not the tax payers.  now, they can borrow from the govt if they have to.  l2bank before you "lol."
2009-09-22 09:44:36
ATG
Banned
+5,233|6816|Global Command
The news here is that the fdic is insolvent.
2009-09-22 10:47:20
rdx-fx
...
+955|6878
So..

Kill the healthy banks to feed the dying banks.

Reward failure, punish success.
Isn't that about the exact opposite of every sane economic theory?

Even if the government pays the banks for the loans at a competitive interest rate, it's not going to be good
1)  Lucrative interest rate loans to government = less money to loan to private industry, homeowners, small business = economic slowdown = more recession
2) Less money in private industry, more money in inefficient wasteful government bureaucracy
2009-09-22 11:05:34
Agent_Dung_Bomb
Member
+302|7023|Salt Lake City

rdx-fx wrote:

So..

Kill the healthy banks to feed the dying banks.

Reward failure, punish success.
Isn't that about the exact opposite of every sane economic theory?

Even if the government pays the banks for the loans at a competitive interest rate, it's not going to be good
1)  Lucrative interest rate loans to government = less money to loan to private industry, homeowners, small business = economic slowdown = more recession
2) Less money in private industry, more money in inefficient wasteful government bureaucracy
The money loaned to the FDIC isn't to support a failing bank, it's to cover depositors of the bank when the bank fails.  The other option besides getting the banks to agree to an interest bearing loan is to charge existing banks higher fees that the FDIC collects for FDIC insurance.

Now which one do you think is going to work better?

 

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