Skip to main content

View Diary: Carnegie Mellon Professor: No bailout needed (305 comments)

Comment Preferences

  •  I say we make it an adjustable rate loan. (3+ / 0-)
    Recommended by:
    checkmate, Mosquito Pilot, ggwoman55

    And we charge interest based upon their credit rating.

    And if they're late in bills, anywhere, it balloons to 30%.

    Fuckers!

    And if we do bail them out without this kind of a set up we should break them up, sell their assets and be done with them.

    They've done enough damage already.

    McCain/Palin '08 - Government Sucks and We'll Prove It!

    by k9disc on Wed Sep 24, 2008 at 01:43:31 PM PDT

    [ Parent ]

    •  Right--we shouldn't "give" anything-- (0+ / 0-)

      make it a loan or take an equity position.
      Require that dividends be suspended.
      Require additional shares be sold.
      Financial institutions don't like to stop dividends or dilute shares because it looks like weakness, but it's not weakness if it's a legal requirement.  Those two ideas would generate hundreds of billions.  
      Add to that some kind of transaction fee as is common in many parts of the world and the taxpayers could end up making money on the deal.

      The keys to this, as with any negotiation, are find where they push back and thereby understand their interests, and think about what your best alternative to a negotiated agreement is.

      I would like to see a next step after this passes of breaking up the mega corporations (can you say overturn "Santa Clara County v. Southern Pacific Railroad"?) so that we never again hear the argument that a company is "too large to be allowed to fail".  That argument is the foundation of the 'heads I win; tails you lose' system of privatized gains and socialized losses.

      "The Universe is change; our life is what our thoughts make it." Marcus Aurelius

      by Mosquito Pilot on Wed Sep 24, 2008 at 07:33:59 PM PDT

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site