Let Banks Fail
Everybody knows ... that the boat is leaking
Everybody knows ... the captian lied. --Leonard Cohen
Let banks fail (go bankrupt). Big banks. Why? Because
bankruptcy destroys debt, and
the big banks got themselves way too far
Using borrowed money, they made trillion dollar bets
in the global speculation casino.
For years they won their bets, and reaped huge fees and bonuses.
Now their biggest bet of all has gone bust, and they want citizens to cover their losses.
(Losses socialized.) Will we?
When small banks fail, they go into receivership and are taken over by banks with
more responsible management, who assume their assets and liabilities.
But no bank is big enough to take on the trillion dollar liabilities of
insolvent big banks like Citi, B of A and others. Why should we?
There are however plenty of
who stand ready to step in once we've cleared out the bad bankers. But there's no reason
to saddle them with the big banks losses either.
This article summarized the problem quite well. Check all links there.
Previously collected news summaries are below. They are still relatively useful
but so much bankster corruption, fraud & theft has been
discovered since this list was made, that it is now quite out of date.
Whose most indebted? Consumers? No,
the Summer-Geithner Plan. Its
worse than we though.
Its time to
the banks, says Congressional Panel
Geithner's stress tests for banks are a
according to former S&L crisis regulator. (Video)
Bush Co. hollowed out the system before leaving.
U.S. Govt's Pension Guaranty fund, which previously invested very cautiously,
was blown on stocks before the 2008 crash.
The fund's purpose was to insure that people who worked their whole lives
would still have a pension even if their company went bankrupt. Now this
insurance fund is looking bankrupt.
Question: was this done to pay off foreign (eg Chinese) Fanny/Freddie creditors?
The banks are still insolvent, in spite of their claimed profits last quarter.
Turns out, all of their supposed profits came from taxpayers
via AIG's controlled collapse.
The Dirty Dozen
Find out who did this to the economy, at least a few of the big names.
Banks sinking faster than gov'ts are bailing them out
The sinking/bailing metaphor works very well here. Could the sinking of
the Titanic have been prevented if they'd just bailed out more water?
Nationwide Protests against Banks!
Thursday, March 19th. Join a protest in your city. I hope we
see more of these.
terrorist tactics to scare Geithner into giving incompetent bankers
extra pay. sign MoveOn's petition
against the bonuses.
"Bury big banks" says Sen. Shelby (R-Ala)
Comment: Its good to see opposition to big banker larceny coming
from both sides of the political spectrum (see B. Sanders video below)
Good Bank in MN Asks: Why bail out Wall Street Greed?"
FDIC going bankrupt
after bailing out so many small banks
What could AIG's shareholders (that's you) buy with $62 billion?
- I thought it was strange that an insurer (AIG) would fail due to toxic assets when
insurance companies are heavily regulated while derivatives (CDO's, CDS's) are not.
that there were really two AIG's, and insurance company and a speculative hedge fund.
You, the American citizen, are bailing out the hedge fund's bad bets.
Kill the Zombie banks
Black Hole Alert: AIG
Why Bankrupt Autos when the banks are more insolvent?
- Responsible banks don't need your taxes
- For good background on the Financial Crisis see:
- Cost of Banker Bailout, as of Nov. 2008:
$8,500,000,000,000 ($8.5 trillion).
This is more than the
cost of WWI, WWII, and all other wars the US has fought! However, amazingly,
it is a mere drop in the ocean of debt, most of which is off the books in the
Shadow Banking System How big is this ocean of banker debt? Hundreds of trillions
- Derivatives are the $800 trillion
elephant in the room
- In fact, at one point, the total notional value of all
derivatives topped out at over 1 quadrillion dollars = $1,000,000,000,000,000 !!!
- These debts, which far exceed the total GDP of the world, cannot be payed of by
bailouts of a few trillion dollars. There is no way to pay them off, even
with all the wealth in the world. The must be cancelled, and the gambling adicts
who made them must pay the piper, and hopefully get into a rehab program quickly.
The sooner we can do this the sooner we can start spending money where it belongs:
Calculated Risk: Lehman Bankruptcy is a Model.
- While the meltdown situation is somewhat complex, this maxim is very
simple: YOU CANNOT BORROW YOUR WAY OUT OF DEBT.
But we are being told that the solution to too much debt is more debt!!!
That's like someone saying: "I'm going to drink myself sober"
Q: Aren't those banks "too big to fail"?
A: They've already failed. The only question is who will be dragged down with them
in failure, their investors or your children? Other things which were "too big to fail":
The Hindenberg, The Titanic, The Roman Empire, etc.
Q: Don't the banks have our economy
hostage ? If we let them fail won't that collapse
our stock market? Just look what happened after Lehman Bros. failed. Don't we
have to give in to their demands, and give them however many trillions of
dollars they ask for?
A: They may have the American stock market hostage, its true. But the stock market is
not America. People only invest in the stock market money they can afford to
lose (read the prospectus: "may lose value"). Any part of our economy dependent upon ONE company
is inherently weak, and bound to fail eventually. The sooner we can clear our
economy of these tumors, the healthier it will be. And in any case, is this how
America deals with hostage takers?
Bill Moyers interviews Simon Johnson
From 60 Minutes:
Wall Street's Role in the Subprime Meltdown
Insider reveals World Savings ' fraud.
A Second Mortgage Disaster is on the Horizon
Courageous Politicans (yes, there are a few):
Bernie Sanders asks Bernanke "where'd the money go?"