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View Diary: Pissing away $700 billion (21 comments)

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  •  the whole point of these *emergency* loans (1+ / 0-)
    Recommended by:
    YucatanMan

    was to ease things up sooner than later. Hoarding, even in the short-term, makes things worse than they need to be. And I don't see how retail banks consolidating in a huge way helps anything at all. So why shouldn't I be angry about how the bailout is being managed?

    Sufficiently advanced incompetence is indistinguishable from malice.

    by m3 on Thu Oct 30, 2008 at 09:01:32 AM PDT

    [ Parent ]

    •  Don't be angry, be rational (0+ / 0-)

      To answer your second question first, it's not clear to me that more banks are better than fewer.  I'd rather have 100 strong banks in America than 100 which are in good shape and another 100 which are continuously teetering.

      As for your fist point, banks need to assess risk when lending money, which is something that was not done properly with these with these collateralized debt obligations.  If you walk into a bank and have good credit and want to buy a house, you can still get a mortgage.  Our lenders need to get back to a solid footing; raking up even more bad loans is not good idea.

      •  Since you obviously have some cogent points to (2+ / 0-)
        Recommended by:
        eightlivesleft, Pager

        make, why didn't you begin by stating some, rather than the odd behavior above?

        I mean, seriously, I was ready to throw a couple zeros your way. There's no reason to behave like that - shouting out senseless statements - particularly when you've actually got a thought or two going on.

        droogie6655321 lives!

        by YucatanMan on Thu Oct 30, 2008 at 09:16:09 AM PDT

        [ Parent ]

      •  Anger is (0+ / 0-)

        a perfectly rational response to wasteful use of my tax money.

        Local banks keep money in local economies, which means that the same people in New York and London are not making all the financial decisions, which centralization has been a major contributing problem in the crisis. Smaller banks, smaller loans, better distribution of risk. Not to mention consumer choice on the retail side.

        People who have good credit cannot, in fact, get mortgages very easily right now. The NYT has run a number of articles about this. However, the hoarding I am talking about is in relation to banks not lending to each other, regardless of credit rating, because they don't trust the credit ratings anymore. It is panic behavior and it is preventing good loans as well as bad ones. The whole point of the cash infusion was to get the good loans going again, and it is not working.

        You don't have to get angry, if for some reason you don't care. But there's no need to mock people who do.

        Sufficiently advanced incompetence is indistinguishable from malice.

        by m3 on Thu Oct 30, 2008 at 10:36:31 AM PDT

        [ Parent ]

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