The Bad Bank is a BAAAAAD Idea.

[JohnWxy]

Some our now proposeing that the Government take over ALL the bad assets for the banks in a government owned "Bad (assets) Bank". This is the very WORST of the available options.

I propose something else. Since more and more economists are beginning to talk (somewhat timorously), of some sort of nationalization of banks - something which I spoke of months ago - I would suggest my idea again -

Since the Wall street bankers have shown their consumate incompetence at banking, we should set up a new People's Bank - a public bank owned by the people. This Government bank would provide loans to individuals and businesses (who are having a hell of a time getting any from the formerly wantonly risk taking Wall street banks) at reasonable rates to those who are reasonably sound credit risks. Let the Wall street banks keep their fucked up assets and let them figure out for themselves how to run their businesses. Meanwhile the People's Bank will set out making loans to all who want and need them (consistent weith good business practices).

This way the people who want to get credit will get it direct from the Government and they can go about there business of either buying a car or home or if it's a business perhaps get short term loans to meet payrolls and pay for inventories.

If individuals need help because of monstrous mortgage debt Congress can discuss helping these people out directly instead of giving billions to banks where much of it goes for bonuses for the jerks who fucked this whole thing up in the first place. I suggest, to start with, we find out which Republicans in particular fought the Democrats efforts to enact legislation to reign in predatory lenders (i.e. drag them out of the shadows and from under their rocks and ask them what ideas they have to fix this problem - other than just giving the banks more money).

This way the country can proceed with its affairs and let those super clever Wallstreet financial managers dig there own way out of the mess they created. (maybe they can ask the Republican party for some of those campaign contributions and lobbying dollars sent their way to buy legislation such as that which deregulated the financial markets which lead to this economic crisis we are now in)


Providing credit is like a utility. It's too important to leave to gamblers and con-men

[Rosa Luxemburg]

1. Good idea but I'm sure people will say but.....

didn't Dennis Kuccinich have a similar idea?

[JackintheGreen]

2. Sounds roughly like 3rd world micro-credit

except that with our standard of living there's nothing micro about it.

Problem is, it wouldn't work. "Working" would require people to sign on to ideals of helping one's fellow man, and that has sadly long left the American character. Fucking "rugged individualism"...

[RC]

3. There are regional and local banks that are loaning money.

More carefully than before, but they are. What about them?

[JohnWxy]

5. If they didn't get caught up in buying CDSs or Securitized Mortgage bundles with fantasy ratings

they don't need any bailout. The players who wanted to maximize profits by recklessly maintaining too low reserves because they bought CDSs (which now apparently won't be backed by their issuers- e.g. AIG) cannot be made whole (we do not even know what the entire amount of losses will be) by bail-outs from us - the people. So set up a public bank FOR THE PEOPLE (this includes businesses). The commercial banks aren't making credit available so let's make credit available directly to those who need it without going through the middle men who have demonstrated they are incompetent or untrustworthy or both.

Make credit available to those who need it and let Wall Street and the large commercial banks who got into CDSs too, be private sector savants - but on their own. (well, we have already committed to $750 Billion in bail-out money for them - but the rest of that should be used to buy equity positions. If we are saving them from going under we should get a piece of the up-side too).

WE have been giving money to the banks but very little of it is getting to the people and businesses who need it. So let's go another route - the direct route.

[JohnWxy]

6. We still have one half of the Bank Bail-out money left. Perhaps the regionals should get

some attention.

[SergeyDovlatov]

4. bad bank... sounds like something from Doctor Who or some scary childhoold story

[notesdev]

7. Why make a bad bank

when we already have so many of them?

[tosh]

8. ...

:thumbsup: