We said for years that the banks would fail.
And now they have.
They are insolvent. Many trillions over. It's not even close.
It's time for an intervention.
It's time to admit what we all know, do the nastiest of nasty deeds, and nationalize the banks of the United States of America.
And after we nationalize them, we need to prosecute the criminals, we need to claw-back the ill-gotten gains, we need to fire the boards and the managers, and we need to start over.
After we re-capitalize them, install new and competent leadership, clean up their books, and issue clear and forceful regulations, then we let them go public again.
This will cost us trillions. Many times over. But the alternative would cost us many, many trillions more.
We are f*cked. The banks are dead. Admit it, face the problem head on, clean it up, and move on.
It hath been foretold.
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58 comments:
Well here you go, it's not the Orange One, but at least it's a start.
You asked for it, you got it.
Kenneth Lewis, BofA CEO subpoenaed by NY State Attorney General.
http://tinyurl.com/ans9w6
How about, the government should fail. They forced BofA to buy ML, they screwed Citi in the same manner. Lets nationalize america with communisism. Face it China has 400 million single males wanting our women, maybe they will bail us out.
Yes, yes, yes.
And stop all the stupid talk about a bad bank. That's so ass backwards. You can't clean up this freaking mess until you, well, clean up this freaking mess. Why is it so difficult to understand? If you're not a sociopath, when you ask yourself, "what's the right thing to do?" you come to the right answer.
Tell me politicians are not Sociopaths:
They believe they are all-powerful, all-knowing, entitled to every wish, no sense of personal boundaries, no concern for their impact on others.
Manipulative and Conning
They never recognize the rights of others and see their self-serving behaviors as permissible. They appear to be charming, yet are covertly hostile and domineering, seeing their victim as merely an instrument to be used. They may dominate and humiliate their victims.
Not concerned about wrecking others' lives and dreams. Oblivious or indifferent to the devastation they cause. Does not accept blame themselves, but blames others, even for acts they obviously committed.
Etc, etc....
I read an article about politicans being sociopaths, but can't find it now.
The banks need to be nationalized out of bankruptcy. The stock and bondholders lose, too bad. The Americano needs to see that when you f*ck up that badly, you lose everything. Unfortunately it is not politically correct to warn an American about f*cking up. We have become tantrum throwing children with parents who are too dumb to give us a smack when we need it.
When the banks have been nationalized they need to be used to lend money in support of projects that build infrastructure, recover resources and reestablish a manufacturing base instead of lending money that buys Chinese plastic garbage.
Bank of America should be converted to the "Bad Bank" the feds keep yammering about. BoA is already broke, the investigations are starting, and BoA common stock is just about down to scrap paper levels.
It seems right and proper that the self proclaimed Bank Of America become the dumping ground for all the trash that is floating in the financial world.
What a plan.
-Snow
Nationalizing the banks will not make them trustworthy.....the banksters need to be publically executed for all to see so that nobody would try such fraud again....ala China executing the melamine fraudsters.......nothing will work until this drastic measure is taken....it hath been foretold.
What is wrong with letting the banks that are insolvent go bankrupt. There are still many banks that have good assets. Let reward them by letting the bad ones go away. If you nationalize the bad ones, you hurt the ones that were responsible. That sends a bad message.
The banks in the USA? The banking concept is insolvent. This is a remarkable phenomena. There is no doubt that it correlates with globalization and the internet. There is no doubt that it correlates with people's intrinsic inability to not actualize reality on their own. Our economy has become a bizzarro mirror version of Second Life. Its like watching a freekshow hybrid of The Terminator and The Matrix.
Do we swallow the red or the green pill or just head to Crystal Palice?
DP
Nationalization is fine as long as the shareholders and bondholders are wiped out, the management is replaced, bonuses and exhorbitant salaries are clawed back, and new equity shares are sold to raise capital. The government can buy some shares to prime the pump.
What are the chances of that happening? Zero. Here's how it WILL work. Government pays an exhorbitant price for new equity shares, dilluting (but not replacing) existing shareholders, and takes on all obligations of the banks with the full faith and credit of the US. Management remains. The public is never told how much this will cost, but eventually it will be tens (or hundreds) of trillions once all of the derivatives are finally sorted out. The Treasury borrows money to cover it all until the interest rates are sky high. The rich and well-connected buy up everything of value with their soon-to-be-worthless dollars. The Fed (the ultimate sugar daddy) prints enough money to cover it all, until the dollar finally collapses. It all starts over with 2% of the people owning 99% of the wealth.
But ken lewis said they dont need anymore tarp funds.He said everything is peechee.
We shouldn't nationalize the banks. We should dismantle them. The crux of this problem is fractional reserve banking with a debt-based currency. The dollar is born and conceived in sin. A dollar only comes into existence when someone borrows it into existence.
(CNN) -- Bank of America CEO and Chairman Kenneth Lewis has been issued a subpoena by the New York State Attorney General's Office, which is investigating whether the bank violated state law by withholding information from investors
Lets the baks die. Or just have an insolvent government run buy criminals. Whoops, that sounds familiar.
It turns out BoJangles and his ward-hack administration are True Enablers.
There is No Difference between mixed-race Barry 44 and the corner boy shuffling around out in the snow on the South Side holding a few little cellophane bags with white powder in them leaning in to stopped cars...
One in the Same. Pimps, Pushers and Con-Men.
This administration has failed the People already.
Let's bring this painful chapter to a close. They are just as bad as even Bushco, just in a smarter way.
AMerica IS Dead. Time for ACTION!
Atention! Atention!
Europeon banks are in worse shape then ours!
Way worse.
"...claw-back the ill-gotten gains"
This is all you have to say. Write your congressperson & senator, write BO.
Keep writing until you hear them talk about it. Keep writing until the MSM talks about it. Eventually they will realize we are not going to be happy little sheeple until they Claw Back The Ill-Gotten Gains!
GT Charlie
Amen Brother!
Wind Farmer, I hope your namesake is in regards to facing a strong wind on a sunny day until your face looks like an orange rind like the Big MO, or perhaps lighting farts to cut down on the heating bills.
What I trust it is not, is being a boongoled picken mindless wind robot.
Annononut said:
‘How about, the government should fail. They forced BofA to buy ML, they screwed Citi in the same manner. Lets nationalize america with communisism. Face it China has 400 million single males wanting our women, maybe they will bail us out.’
Awww; poor BofA and Citi the goberment made them do it..
Moron!
Before we even talk about nationalizing the banks, convince me there are competent leaders for them, cause I haven't seen any lately.
Keith, aren't you due for a post on gold's rise? It looks like it's ready to retrace down with some profit taking so a "buy" call from S&A would be appropriate at this point.
Ok, so we nationalize the banks and then give it back so they can repeat this process all over again. Face the truth Keith, we are so darn corrupt! For example, after the accounting scandals (i.e. Enron, World Com, etc...) the government passes Sarbanes-Oxley. Well less than 18 months later, they started erasing most of the regulations! The same thing will happen, and then the banks will start handing out money and then they become insolvent and then we have to bail them out again.
What America needs is a population that checks the actions and powers of their elected officials. We need to stop playing this two party hustle and objectively watch over our leaders' actions.
I'm with you until you say let them go public again Keith. Screw it. Drop the Fed and let the gov't control the money, it's obvious the banksters are scamming us all anyway.
It's a good time to to show them who's boss.
Hey, if you want Peter Schiff to run for Senate:
http://www.schiffbomb.com/
Nationalize?
It's called bankruptcy and liquidation.
Aren't there something like 8,000 banks in the US? So, you want to nationalize ALL of them? Or do you want to nationalize the worst-of them?
So, where would be the competition in such various scenarios be, do just a few banks have government backing like Obamas plan to throw bad mortgage debt into fannie and freddie?
Wouldn't it be difficult to compete in a free market economy with a bank that can go endlessly into debt? Wouldn't that put other banks that were solvent, out-of-business?
And wouldn't that put everything into the hands of a few government bankers? Think about whom would be making the decisions in such a system, politicians or oligarchs with no recourse or oversight?
Hot off the presses folks:
"20 Million Chinese out of work."
Let's all cry a giant collective tear for the poor families, reach down deep, we're all in this together, remember.
We gotta buck up and start buying useless toxic Chinese-made crap everyone!
For god's sake people have a heart.
DO IT FOR THE CHILDREN!!!!!!
http://tinyurl.com/c4svej
Sort of off this immediate topic:
A major side effect of always blaming others for the Housing bubble and not taking personal responsibility, i.e. Its Bush’s fault or the Fed or Wall Street etc.
Is that it also shows up when we are looking for a solution.
The big question people are struggling with in relation the “Santalli rant”
Is how do you differentiate the gamblers from the innocent who are experiencing legitimate difficulties.
The answer is that in both; ‘when blaming someone; and ‘when feeling sorry for someone’
WE INVALIDATE THE INDIVIDUAL.
The individual was capable and creative to make him/herself appear rich.
The individual is capable and creative to deal with life’s challenges.
If the banks are nationalized who will be in charge of them? Geithner? Bernanke? Obama? No one in D.C. has seemed very angry about the corruption and graft going on. We are still waiting for the Orange Guy to go to jail.
Do you really want to nationalize the banks and give them to the current crowd?
Just thinking....
since you stopped posting me let me thank for all of your pre election pro obama postings that gave us this man they call mr president because there is now a movement gathering wind and it will rid this country of liberalism the cancer that has destroyed states cities families and as we now watch everyday america so keep up the fight want to hear more its bushs fault and frankie lymon and the teenagers will be a one term act and may surpass jimmy carter in popularity and have you noticed the anti war candidate just authorized 17,000 more troops but hey he inherited this give him some room hes trying to be presidential especially with all those pretty flags around him
And lets have Barney Frank as Bank Czar, but then again, isn't that the kind-of thinking that got us into this mess to begin with?
I think we should temporarily nationalize them, wipe out equity holders, and break them up. No bank should ever be "too big to fail." And then let all of the well run smaller banks flourish like they would and should in a real capitalist free market economy.
Todays market ticker is a must read. 13 Years?
http://market-ticker.denninger.net/
Keith, once the banks are nationalized, then there won't be millions of donor dollars available to our political ruling class. They can't let that happen, or can they??
...moral hazard...
This should happen. In any sensible world, it would have already happened.
However, it will not happen here, because Rush & his braying crowd of dittoheads will scream and rant about "Socialism! Socialism! Aaagh!" and create such a stench that even intelligent politicians (of which there are ever fewer on the landscape) will be unable to vote for this because of the flood of know-nothing threats generated by the hysteria.
Then, about 3 months later, when the eventual price tag for nationalization is about 10x higher than it would have been, it will be done.
Anyone getting the feeling that it's all falling apart now, and nothing can stop it?
That we're all residents of New Orleans, the big one just hit, and there's no help on the way?
That everything you've ever known and believed and hoped for and trusted was wrong?
That all the 'wealth' of the world could be suddenly washed away?
And that the worst of our worst thoughts could happen - riots, fires, hunger, bullets?
I'm an optimist, to a fault, but I've got a really, really bad feeling.
We're about to plunge into the abyss. Unless the government does something dramatic. This weekend.
Checkmate.
No, it is time to let them fail. Once they fail, new banks can be made from the rubble.
These bailouts are anticompetitive for small banks who played by the rules.
I don't think you want the government to have unchecked access to your records and your money. That is dangerous.
who gonna run the nationalized banks...well how about Kwame Kirkpatrick (ex mayor of Detroit) and the newly available Rod Blagoyovich....at least they'd be honest about the corruption..
I thought for many years that I was stupid in believing that 2+2=4.
My grandparents told me that borrowing money for consumer items was shameful.
One day my friends bragged to me that their houses doubled in price and suggested that I was stupid to keep renting.
Stupid to me was that my friends were happy to pay higher property taxes and insurance. Stupid to me was they second mortgaged their homes to buy consumer items. Stupid to me was that they did not sell their properties save the money and started renting.
I figured that figures don't lie and liars don't figure. They did not.
I didn’t understand that my grandparents could be wrong by teaching that 2+2=4.
To me the sad part is that we, the taxpayers MUST bail out the braggers BUT are still picking on the weak. Taking advantage of uneducated and the elderly is an act an extreme coward. These poor and uneducated people were never explained the truth and in some cases could really not understand that 2+2 is not 6 but plus were easily manipulated into believing the hype and lies.
Therefore, we must not pay a single tax dollar to help my bragging BS**ing friends but must prosecute and confiscate monies from these cowardly abusers. The list of involuntary contributors will be very, very long and lots and lots off $$$ will become available.
Take care!
Three things should have been
done, but it's now far too late
to make any difference - since the
damage has spread like a malignant
tumor through all economies:
(1) Eliminate the Federal Reserve
(2) Eliminate the World Bank
(3) Eliminate the IMF
This just further paves the way for introducing the new currencies - read Putin's speech at Davos. Google the Amero - its already been designed, and will be our new North American Union currency. The time line for this is within the next 5 years.
Oh yeah, nationalize the banks, so the liberals, like Barney Frank, can run them "successfully", as they have done with Fannie Mae & Mac. These idiots can't even manage passports, but you want them to run all the banks. Sure, let them make the banks a crook's nest for liberal fund raising at taxpayer expense.
“Capital must protect itself in every possible way, both by combination and legislation. Debts must be collected, mortgages foreclosed as rapidly as possible. When through the process of law the common people lose their homes, they will become more docile and more easily governed through the strong arm of government applied by a central power of wealth under leading financiers. These truths are well known among our principal men who are now engaged in forming an imperialism to govern the world. By dividing the voter through the political party system we can get them to expend their energies in fighting for questions of no importance. It is thus by discreet action we can secure for ourselves that which has been so well planned and so successfully accomplished." - 1924 US Banker’s Association Magazine
"Anonymous said...
I thought for many years that I was stupid in believing that 2+2=4."
Do Not Believe you are stupid, you're probably not and a Good Person too.
It's just the Great Unwinding Happening Before Our Eyes.
Are you ready to Rumble? Ask yourself what are you going to do when your front door bashed down by a hungry, sick, hummer driving parent that was thrown out of their home with nothing?
Boom Boom. Two Down.
New World Order.
George and Dicks Depression of '09.
Good one Keith!! Nationalizing the banks is the only way to get rid of this albatross called the FED.
It doesn't make any sense that we continue having a two-headed system: A government that is supposedly by the people and for the people (my a*s!), and a bunch of greedy financiers holding both the government and the people hostage to a currency they print and control.
The "privately-owned" FED prints the money instead of the sovereign government of the US. The FED then loans that money to the government with interest, and the banks that make up the FED loan the money they get from the depositors and the FED to the same people who pay taxes to the government that pays the FED!!! This system is f*cked, and the FED must go!
I have a feeling that Obama is headed that way. I hope I am right. But, but, but! The sheeple who don't get it, still believe that nationalizing anything is against the fiber of the American system --this is the residue of the heavy brainwashing that took place during the cold war era and the vilification of the Soviet bloc.
Since Woodrow Wilson, who invented this FED monster, the only president who tried to circumvent the FED was assassinated (google Kennedy's executive order 11110).
There was a time in history when we had real politicians who cared about the people. I leave you with the following remarks by this 1930's man-- Louis T. McFadden, who was the Chairman of the House Banking Committee. It’s like he was talking about today's catastrophe:
"Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks. The Federal Reserve Board has cheated the Government of the United States and he people of the United States out of enough money to pay the national debt. The depredations and the iniquities of the Federal Reserve Board and the Federal Reserve banks acting together have cost this country enough money to pay the national debt several times over.
This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the maladministration of that law by which the Federal Reserve Board {was created}, and through the corrupt practices of the moneyed vultures who control it."
WOW!!!
Nationalize and break them!
http://www.youtube.com/watch?v=Un2Ve-8f3W4
that is what has to happen. government take the bad banks (which is almost all of them, they should leave the few solvent one alone) over, fire the management (this 500k salary crap is bullshit, the salary for these failed execs should be ZERO), wipe out the shareholders, recapitalize the banks that have a viable business, and eventually make them private.
but no, peloser, dodd, and BO are trying to protect their rich contributors from getting wiped out.
DEC 2008
did you all see the piece on GM today? if the bonds for shares transfer takes place fully, the outstanding GM shares will go from 750Million shares to something like 14 Billion shares!
This is why GM's share price is back to 1938 levels!
gm is going to go out of business.
i think i will invest in some plywood and steel plating so I can secure my first floor windows like will smith did in I am Legend.
gotta keep those cash sucking realtors out when they start roaming the streets in search of food.
Keith,
Should these banks be NATIONALIZED or should we let them FAIL, as they deserve.
I say, let them freaking FAIL and let's get this over with. Screw them, they deserve it. The faster we let them fail, the faster we get out of this mess.
Dny
The banks are already de facto nationalized. Not sure about letting them fail because if they do, there will be runs on the banks. Not a good thing. Could have devastating repercussions if the runs are severe.
I know that if I saw Citi and BofA go under, shut their doors, and close their accounts once and for all because they have no chance of making it as a going concern, I'd run down to my bank and take out everything I could. I'm not alone in that thinking.
On the other hand, formally nationalizing the banks would hand over way too much power to the govt...not to mention the unconstitutionality of it.
Folks, we are caught in a rundown between 3rd and home and we're gonna get thrown out sliding into either base.
yes yes, take bofa over, clean house, and bust it up and give me back First Interstate.
no more of this "too big to fail" BS.
Hmmm... just thinking out loud...
Should I get as far as possible away from this fucking mess NOW, before the airlines are taken over(?)
Nationalize them for the purpose of splitting up the pieces and selling them off.
Not all the banks, just the insolvent ones (ie: Citi and BAC).
That is what the FDIC is supposed to be for.
It is a tried and true method. They did it with Indymac and like 10 smaller banks last year. Sweden did it with a bunch of its banks, I don't know, 10 or 20 years ago or something.
They created the Resolution Trust Company back in the 80's to do this same thing with all the Savings & Loans that became insolvent.
This. Is. The. Answer.
Get on with it, for f&ck sake!
Bankruptcy not Nationalization.
I can't tell anymore -- is this the Flying Stupid Dumbo Elephant ride, or the Tower of F'ing Terror ride?
But... hey! Either way, I didn't buy a ticket for either one, so, can I get off now?
I HATE puking.
Yet Another Anon said...
It turns out BoJangles and his ward-hack administration are True Enablers.
There is No Difference between mixed-race Barry 44 and the corner boy shuffling around out in the snow on the South Side holding a few little cellophane bags with white powder in them leaning in to stopped cars...
One in the Same. Pimps, Pushers and Con-Men.
This administration has failed the People already.
Let's bring this painful chapter to a close. They are just as bad as even Bushco, just in a smarter way.
AMerica IS Dead. Time for ACTION!
----------------------------------------------------------------------
Are you sure you aren't refering to the "mixed race" (German and Irish) suburban kid in the Honda Civic with his baseball cap on backwards, skinny jeans, skater shoes with the laces undone making pickups and dropoffs in the mall parking lot?
RayNLA
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