Zombie Banks? Please Let That Term Stick.

[KittyWampus]

Krugman uses the term Zombie Banks in referring to Citibank and BofA and how they exist because the Govt backs them up but are still unable to extend credit.

Dead Banks Walking.

Or rather, Dead Banks Waiting- for another infusion of capital that will get spread out to shareholders.

[RUMMYisFROSTED]

1. Dead Banks Bilking?

:shrug:

[Sultana]

2. Kick

[prairierose]

3. Zombie banks is a descriptive term..I hope it sticks ...n/t

[invictus]

4. K&R

[anonymous171]

5. K&R. nt

[david_vincent]

6. Krugman didn't invent the term

This is a term that was widely used during the Japanese meltdown, to refer to many of their banks. One of the most perplexing things about this whole mess is that we had clear examples from history -- recent history -- of what not to do, and we did it anyway, because we let the loudest voices get what they wanted, like the babies they are.

[OnyxCollie]

7. Zombies!

[Phx_Dem]

8. It sounds like you have no idea what you're talking about.

At least not with respect to BoA. They were relatively healthy until they acquired Merrill Lynch. The fact that they did acquire ML kept hundreds of thousdands of people from losing their jobs. Ditto for Chase's acquisition of Bear Stearns and Wells Fargo's acquision of Wachovia. If the acquired financial institutions had gone down, it could have added nearly half a million people to the unemployment rolls.

The TARP money they received from the Fed was not a gift. The Fed bought BofA stock (as they did with the other 8 banks), and they didn't give the banks much of an option to decline. Taxpayers will make dividends on those stocks when, if they increase. Wells Fargo has already paid a $377 million dividend, with more to come.

Calling banks or other businesses cutsey and stupid names doesn't help our situation. Without banks, our country will be completely frozen financially. No capital, no credit = no homes, no cars, no college tuition, no new purchases, no nothing.

This is not fun and games.

[chieftain]

9. And let's use it as the new name for the GOP: the zombie party

They have no new ideas, they've eaten the brains of their leaders and followers and they need to be returned to the graveyard of failed political philosophies.

[dkofos]

10. How do you kill a Zombie Bank??

Nationalize it.