Good for you.
You backed giving taxpayer money to giant rich banks that then spent the money on lavish bonuses.
Will Obama bail out the oil industry next?
- Thread starter Text Drivers are Killers
- Start date
Good for you.
You backed giving taxpayer money to giant rich banks that then spent the money on lavish bonuses.
Text Drivers are Killers
Joe Biden - "Time to put Trump in the bullseye."
HAHAHA. You stupid fool. JP Morgan and Chase and Bankamerica are hedge funds not banks and should have been allowed to fail. America would be far stronger with them gone. You are either a paid govt shill or the most gullible person ever.
Text Drivers are Killers
Joe Biden - "Time to put Trump in the bullseye."
If the banks really were TBTF then why weren't they split up? That's the question you govt shills can't answer.
ChoppedLiver
New member
I see you're one of the deniers also, ruin.
Less black cock sucking and paying more attention would probably do you some good.
Leonthecat
Racism Watchdog
Racist Princess swine.
What makes you think I wanted them bailed out you flailing retard?
Again Dubya bailed out the banks.
canceled.2021.1
#AMERICAISDEAD
Fucking stupid Deshtard whines and complains about the big banks yet back policies that only made them bigger. Dumb twat
evince
Truthmatters
what would have happened if we had not bailed out the banks the republican broke with stupid ideas of ( oh they are smarter than he government and will act all nice without any rules)?
face it people
Once he republican party BROKE the system there was NO CHOICE but to save the banks
don't pretend things would have gone fine if they just lie them all DIE
face it people
Once he republican party BROKE the system there was NO CHOICE but to save the banks
don't pretend things would have gone fine if they just lie them all DIE
Text Drivers are Killers
Joe Biden - "Time to put Trump in the bullseye."
Obozo gave the banks trillions of $. Bush started the process but O greatly expanded it.
Text Drivers are Killers
Joe Biden - "Time to put Trump in the bullseye."
How many times must the board explain this to you?. The "banks" are not banks - they are giant hedge funds speculating in all the markets and their bankruptcy would have been good for america and the world. THINK
evince
Truthmatters
tell us what would have happened if they had been allowed to just collapse
You are not "the board" loser. You only speak for yourselfn
evince
Truthmatters
https://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008#Rationale_for_the_bailout
Rationale for the bailout[edit]
Government officials[edit]
In his testimony before the U.S. Senate, Treasury Secretary Henry Paulson summarized the rationale for the bailout:[53]
Stabilize the economy: "We must... avoid a continuing series of financial institution failures and frozen credit markets that threaten American families' financial well-being, the viability of businesses both small and large, and the very health of our economy."
Improve liquidity: "These bad loans have created a chain reaction and last week our credit markets froze – even some Main Street non-financial companies had trouble financing their normal business operations. If that situation were to persist, it would threaten all parts of our economy."
Comprehensive strategy: "We must now take further, decisive action to fundamentally and comprehensively address the root cause of this turmoil. And that root cause is the housing correction which has resulted in illiquid mortgage-related assets that are choking off the flow of credit which is so vitally important to our economy. We must address this underlying problem, and restore confidence in our financial markets and financial institutions so they can perform their mission of supporting future prosperity and growth."
Immediate and significant: "This troubled asset relief program has to be properly designed for immediate implementation and be sufficiently large to have maximum impact and restore market confidence. It must also protect the taxpayer to the maximum extent possible, and include provisions that ensure transparency and oversight while also ensuring the program can be implemented quickly and run effectively."
Broad impact: "This troubled asset purchase program on its own is the single most effective thing we can do to help homeowners, the American people and stimulate our economy."
In his testimony before the U.S. Senate on September 23, 2008, Fed Chairman Ben Bernanke also summarized the rationale for the bailout:[54]
Investor confidence: "Among the firms under the greatest pressure were Fannie Mae and Freddie Mac, Lehman Brothers, and, more recently, American International Group (AIG). As investors lost confidence in them, these companies saw their access to liquidity and capital markets increasingly impaired and their stock prices drop sharply." He also stated: "Purchasing impaired assets will create liquidity and promote price discovery in the markets for these assets, while reducing investor uncertainty about the current value and prospects of financial institutions. More generally, removing these assets from institutions' balance sheets will help to restore confidence in our financial markets and enable banks and other institutions to raise capital and to expand credit to support economic growth."
Impact on the economy and GDP: "Extraordinarily turbulent conditions in global financial markets... these conditions caused equity prices to fall sharply, the cost of short-term credit—where available—to spike upward, and liquidity to dry up in many markets. Losses at a large money market mutual fund sparked extensive withdrawals from a number of such funds. A marked increase in the demand for safe assets—a flight to quality—sent the yield on Treasury bills down to a few hundredths of a percent. By further reducing asset values and potentially restricting the flow of credit to households and businesses, these developments pose a direct threat to economic growth."
Regarding the $700 billion number, Forbes.com quoted a Treasury spokeswoman: "It's not based on any particular data point. We just wanted to choose a really large number."[55]
Journalists[edit]
According to CNBC commentator Jim Cramer, large corporations, institutions, and wealthy investors were pulling their money out of bank money market funds, in favor of government-backed Treasury bills. Cramer called it "an invisible run on the banks," one that has no lines in the lobby but pushes banks to the breaking point nonetheless. As a bank's capital reserve of deposits evaporate, so too does its ability to lend and correspondingly make money. "The lack of confidence inspired by Lehman's demise, the general poor health of many banks, this is going to turn this into an intractable moment," Cramer said, "if someone in the government doesn't start pushing for more deposit insurance."[56]
Rationale for the bailout[edit]
Government officials[edit]
In his testimony before the U.S. Senate, Treasury Secretary Henry Paulson summarized the rationale for the bailout:[53]
Stabilize the economy: "We must... avoid a continuing series of financial institution failures and frozen credit markets that threaten American families' financial well-being, the viability of businesses both small and large, and the very health of our economy."
Improve liquidity: "These bad loans have created a chain reaction and last week our credit markets froze – even some Main Street non-financial companies had trouble financing their normal business operations. If that situation were to persist, it would threaten all parts of our economy."
Comprehensive strategy: "We must now take further, decisive action to fundamentally and comprehensively address the root cause of this turmoil. And that root cause is the housing correction which has resulted in illiquid mortgage-related assets that are choking off the flow of credit which is so vitally important to our economy. We must address this underlying problem, and restore confidence in our financial markets and financial institutions so they can perform their mission of supporting future prosperity and growth."
Immediate and significant: "This troubled asset relief program has to be properly designed for immediate implementation and be sufficiently large to have maximum impact and restore market confidence. It must also protect the taxpayer to the maximum extent possible, and include provisions that ensure transparency and oversight while also ensuring the program can be implemented quickly and run effectively."
Broad impact: "This troubled asset purchase program on its own is the single most effective thing we can do to help homeowners, the American people and stimulate our economy."
In his testimony before the U.S. Senate on September 23, 2008, Fed Chairman Ben Bernanke also summarized the rationale for the bailout:[54]
Investor confidence: "Among the firms under the greatest pressure were Fannie Mae and Freddie Mac, Lehman Brothers, and, more recently, American International Group (AIG). As investors lost confidence in them, these companies saw their access to liquidity and capital markets increasingly impaired and their stock prices drop sharply." He also stated: "Purchasing impaired assets will create liquidity and promote price discovery in the markets for these assets, while reducing investor uncertainty about the current value and prospects of financial institutions. More generally, removing these assets from institutions' balance sheets will help to restore confidence in our financial markets and enable banks and other institutions to raise capital and to expand credit to support economic growth."
Impact on the economy and GDP: "Extraordinarily turbulent conditions in global financial markets... these conditions caused equity prices to fall sharply, the cost of short-term credit—where available—to spike upward, and liquidity to dry up in many markets. Losses at a large money market mutual fund sparked extensive withdrawals from a number of such funds. A marked increase in the demand for safe assets—a flight to quality—sent the yield on Treasury bills down to a few hundredths of a percent. By further reducing asset values and potentially restricting the flow of credit to households and businesses, these developments pose a direct threat to economic growth."
Regarding the $700 billion number, Forbes.com quoted a Treasury spokeswoman: "It's not based on any particular data point. We just wanted to choose a really large number."[55]
Journalists[edit]
According to CNBC commentator Jim Cramer, large corporations, institutions, and wealthy investors were pulling their money out of bank money market funds, in favor of government-backed Treasury bills. Cramer called it "an invisible run on the banks," one that has no lines in the lobby but pushes banks to the breaking point nonetheless. As a bank's capital reserve of deposits evaporate, so too does its ability to lend and correspondingly make money. "The lack of confidence inspired by Lehman's demise, the general poor health of many banks, this is going to turn this into an intractable moment," Cramer said, "if someone in the government doesn't start pushing for more deposit insurance."[56]
cawacko
Well-known member
Bank of America is not a bank? Haven't heard that one before