"Who needs the government to create a new “bad bank” when it has Bank of America?"
-New York Times Breaking Views column, mocking BofA's incompetent CEO Ken Lewis and calling for his ouster, January 2009
January 27, 2009
Soot and Ashes Quote of the Day
"Who needs the government to create a new “bad bank” when it has Bank of America?"
-New York Times Breaking Views column, mocking BofA's incompetent CEO Ken Lewis and calling for his ouster, January 2009
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Because the government is still pretending that BOA is solvent. That's why they're proposing another bad bank a la the Bank of Japan circa 1992.
Remember, folks, BOA took the bullet called "Countrywide" for Team Bush. There is a lot of political interest in keeping all those mortgages stable. BOA may never actually fail, since the government can choose it as one of the small set of banks that it will bailout no matter what.
As Keith shows in his post regarding the borrowings from the Federal Reserve, the Fed is already acting as the "Bad Bank" by taking in dead, toxic, "assets" from failed financial gamblers.
Ben Bernanke is desperate to offload these dead dog MBS/CDOs to the taxpayer so he and the other Fedheads are lobbying hard for an official "Bad Bank" to be created.
Bank of America and JPM have also absorbed much trash too, so they will also be first in line to transfer the losses to the taxpayer.
Then, the credit orgy can resume once again.
Bob Herbert - When the GOP Talks, Nobody Should Listen.
I laugh my ass off with every point drop the NYT makes towards zero.
Why doesn't Bob write that you should listen, reflect on the valid points and hurl insults at the invalid points.
This is why. He wants to lead sheep.
No Keith--this is the quote of the day--hell, the quote of the decade:
"American corporations refuse to allow people to have rising wages. They outsource, hire illegals, and lobby for more immigrant visas so that way wages get depressed.
And then they complain that sales are down - where do they think the money comes from?"
This quote crystalizes a large but overlooked part of the problem. I agree that American piggish spending has helped greatly to cause this crisis. However, what has been ignored is how free trade and unrestricted illegal immigration has crushed the living wage in the United States. How can the American worker compete if his job can be exported to someone willing to work a twelve hour day, without benefits or pension, six days a week for dollars per day? The typical corporation has moved manufacturing (and servce jobs) to the countries with the lowest wages and the least amount of environmental protection. To compete and survive, other corporations have followed suit.
I think if the American worker wants to see his or her future under continuing unrestricted free trade and unrestricted illegal immigration, s/he need look only to Haiti, the new American standard of living.
>unrestricted illegal immigration has crushed the living wage in the United States.
Don't Listen to that. Just follow me.
Hey kids! It's the last Tuesday of the month!! Does anyone else look forward to the last Tuesday of the month like I do? This is of course 'Case-Shiller Day'. My area (Boston) is down 2.7% from October to November, and hit its lowest point since August 2003. Booyah! I can't wait to see December's numbers. The two month lag is just brutal..
Burn motherf*cker, burn!!
actually, not a bad idea. use bofa as the dumping ground. the government can inject more cash into bofa, why create something new?
Gaydar alert.Hate to be his intern.
Bad Bank, BofA, blah blah blah ... the revolving door of these guys pulling something out oftheir ass and then sticking the head back up in is getting dizzying.
I just watched a CNBC babe justify CITI buying their $50 million plane because of jobs while the people (some barely pay rent pay taxes that are now going to those jack-asses). Clearly they didn't teach moral hazard very well in the business/cheerleading school she went to.
The finiancial system gangrenous. It is time to amputate. They think they are the head and we can't do that but they are wrong. We are the head and it is time to cutt them off.
Don Payne
American corporations keep wages ridiculously low to keep their profits ridiculously high, and yet they shower us with ads for their latest, newest, coolest products that we MUST buy to have a decent life. So, we buy, buy, buy. But how? Our wages are ridiculously low. Ohhh, yeahh, credit cards! Charge, charge, charge! But then... our wages are still ridiculously low so we can't pay our debts. Then what?? Hmmm...the corporations scratch their heads....BAILOUT! Rinse and repeat.
"The renewable energy and energy efficiency (RE&EE) industries represented more than 9 million jobs and $1.04 trillion in U.S. revenue in 2007... RE&EE would generate about 37 million jobs and $4.29 trillion in annual revenue by 2030."
- American Solar Energy Society, Report Forecasts Millions of Renewable Energy Jobs
Yeah, but instead of investing heavily in this they want to keep bailing out these hopelessly broken, criminal institutions and dole out huge tax cuts to the top 0.25 of the population.
This country deserves what it gets.
Suckers. Greedy fat corpulent pigs dance while you bleed. Who cares how much you complain?
http://www.youtube.com/watch?v=6_9MCIzKyUk
Dear clueless sheep and opinionated unwashed masses:
If we want your 2 cents we'll reach in your pocket and take it. It's business baby! Just keep paying your bills on time and all will be well.
PS: screw you.
A taxpayer-owned 'bad' bank with 'dark' accounting techniques conceived by the 'shadow' government to allow continued funding of 'black' operations.
**Fictional reserve lending**
Legalized counterfeiting.
Bad Bank = Evil Bank?
I think I will make a perfect President of the Bad Bank. "The Empire Strikes Back". "Luke, I am your father".
Darth says to America, "I find your lack of faith disturbing". America the bad bank's customer- Choking sounds- falls dead on the floor... The dark-side has won. Oh, did someone check Mr. Bush's pockets before he left the White House? There seems to be a few trillion missing!!!
I told all of you idiot Sashers and HP'ers that sooner or later, the government will take all of the "bad debt" and then take all of that liability on themselves. Thus ultimately, the government will end up with the risk. Then once the politicians such as Barney Frank are in charge, they will advocate "charging off" or "forgiving" all of this debt. Boy, don't you Sashers and HP'ers feel so damn stupid for saving your money and not running up a huge debt? Honestly, how do you feel right now?
Thanks to Hank, Goldman Sachs gets 'top billing' as the baddest of bad banks.
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)
3rd president of US (1743 - 1826)
I sold my XLF - an etf of financial institutions. I felt dirty owning it.
Shareholders and bondholders of these institutions should be wiped out entirely. Anyone invested in these companies now is just a pure speculator.
The problem is that the government will be too afraid of a stock market crash if they nationalize the BofAs and Citis outright.
I still think Obama and congress will say 'moral hazard be damned' and opt to just print more money - they'll overpay for the toxic assets with newly issued treasuries that they've sold to the federal reserve.
Folks, it's worthless to contact your crooked representatives in Congress, and it's worthless to vote. But we have power:
DON'T SHOP FOR ANYTHING NEW, DON'T BUY ANY CARS FOR THE NEXT 10 YEARS, DON'T LEASE ANYTHING, DON'T USE CREDIT CARDS, DON'T BE A FINANCIAL SLAVE.
That will call attention from the corrupt Washington.
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