TARP is so far keeping the big banks from being nationalized or dead, either of which would wipe out shareholders. We are directly supporting shareholders at this point, and there is no downside from a shareholder point of view and not much upside to average taxpayers. Nationalizing seems like a good idea, though with all the CDS unknowns/hedging, it seems like ALL the banks would have to be nationalized at once given that nationalizing, as has been suggested by Ritholtz, would remove all obligations. Can't shorten one leg of a chair without consequences, have to cut them all at once. We may have gotten lucky with Lehman, though at this point I'd almost rather just see these megabanks die than be bailing their economy trashing executives and major shareholders.
I suggested congress has little skin in the game because they don't seem to bother too much with the taxes thing.
3 comments:
Reading Greenwald almost made me vomit. As I have suggested before, the U.S. is an ethics free zone.
It has become clear why TARP's passed. None of these congressional bozos has any real skin in the game.
I dunno - Daschel's out, which is a good sign.
...and I figure some of these turkeys have stocks & bonds. You figure some of them are feeling it enough to care.
-not about US, surely. But they might accidentally make something with long coattails.
TARP is so far keeping the big banks from being nationalized or dead, either of which would wipe out shareholders. We are directly supporting shareholders at this point, and there is no downside from a shareholder point of view and not much upside to average taxpayers. Nationalizing seems like a good idea, though with all the CDS unknowns/hedging, it seems like ALL the banks would have to be nationalized at once given that nationalizing, as has been suggested by Ritholtz, would remove all obligations. Can't shorten one leg of a chair without consequences, have to cut them all at once. We may have gotten lucky with Lehman, though at this point I'd almost rather just see these megabanks die than be bailing their economy trashing executives and major shareholders.
I suggested congress has little skin in the game because they don't seem to bother too much with the taxes thing.
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