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Planetary Rescue Operations [Filtered & blocked by Google!]

More On Bank Bailouts, Toxic Assets

Posted by msrb on March 26, 2009

Back to square one [IF you're lucky!]

MSRB Thought for the Day: If the government did this, and banks did the other …

Once the banks start lending, the ‘economy’ will be ‘strong’ again [sic.] Preventing the price of oil from racing past 3-digits is a mere technicality [sic.]

Geithner’s Plan is “Extremely Dangerous.” —Economist Galbraith

Misconception: “The trouble with the economy is that the banks aren’t lending”

Reality: “American consumers still have debt coming out of their ears, and they’ll be working it off for years.  House prices are still falling.  Retirement savings have been crushed.  Americans need to increase their savings rate from today’s 5% (a vast improvement from the 0% rate of two years ago) to the 10% long-term average.  Consumers don’t have room to take on more debt, even if the banks are willing to give it to them.”

See Part I of the interview here.

“Geithner, Obama Kowtowing to ‘Massively Corrupted’ Banks.” —James Galbraith

University of Texas professor James Galbraith, questions the sanity of toxic asset buyout by the government (people), and wonders why the ‘legitimate’ alternative,  FDIC receivership of insolvent banks, is not played out.

On why Obama administration is NOT pushing for FDIC receivership, Galbraith says:  “Political influence of big banks,” is dictating their plan.

See Part II of the interview here.

Geithner, Obama plan is technically unsound even by ”principles” of capitalism; it’s a socialist bailout of  capitalism, using other peoples’ money, and is bound to fail! —MSRB

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