$700 BB - why not charter a Federal Commercial Reserve Bank?

Should 700BB be used to charter the Federal Commercial Reserve Bank instead of unclog

  • Yes. That's a better way to put 700BB to use and address same issue

    Votes: 5 71.4%

  • No - Bailout is the only way

    Votes: 0 0.0%

  • No - Don't use the 700BB at ALL. Screw you all, no hand-outs.

    Votes: 2 28.6%

  • Don't care.

    Votes: 0 0.0%
  • Total voters
    7
E

Esq Esq Esq

I know that if the bill passes the trading will be great for a few days.
Just buy buy buy.

But:


why not use the $700 BB of taxpayers money to charter a Federal Comercial Reserve Bank that will finance the new lending.
Isn't that what Bush was saying today: lets get rid of the "clogging" of the toxic paper and let banks lend.
So why not instead of buying waste, charter a profitable organization.

Have people directly borrow from this reserve.
Have people directly refinance.

Let the others fail, but guess what - America WILL NOT BE without banks. In less than 2 minutes there will be new investors with new banks. Wal-mart will reapply for bank status and BAM - we got a solid retail bank (besides the reserve).


While a lot of my friends and family right now are shaking for job security as they are in the affected banks - lets think objectively, not subjectively.

Do we really need to "unclog" the system?
 
Agree. Finally, someone saying the same thing in my mind. Credit crunch is what the government want to solve. If they get to do that, they could care less whether bankers go down with toxic waste or not.

Of course, whether we should just let the credit crunch to ring out excess, that is a separate question.

When you have a traffic jam, you go around it. Not right thru it.
 
My question is what kind of regulations will be on this type of institution? Fannie and Freddie got into some financial hanky panky, what's to stop this thing from repeating history down the road?
 
Quote from traderjb:

My question is what kind of regulations will be on this type of institution? Fannie and Freddie got into some financial hanky panky, what's to stop this thing from repeating history down the road?
More...

Regulation and conservative lending. It is still government and it comes with all the baggage of a government run entity, but the alternative is worse.

Freddie and Fannie went down because of loose regulation and lair loan. Without these 2 problems, Freddie and Fannie exists for 60 years and they were fine.

Bail out and buy out all the toxic waste. That is a huge government run entity too.

I rather take a fresh start.

Once the economy is good. Chop up this bank and IPO it.
 
Quote from stock777:

Why not just zero out all transactions, give everyone 100k, and start from scratch?
More...

You don't get the leverage that a bank gets in injecting money into the economy. That's why Paulson & co said it has to go thru them and pay them.

For example, government give you $500 bucks. You spent it. That's it. $500 of credit injection.

If I form a bank with $500 seed money, I can lend out $5000. That's $5000 credit injection.
 
You must log in or register to reply here.
Back
Top