John Slater

What's Wrong with TARP

Let's hope 50 years is too conservative. Last down cycle ended around 1939 and the excessive leverage was completely cleaned up by 1954. it then took about 30 years for the current leverage cycle to begin.


On Jan 31 12:56 PM MSmailbox wrote:

> I like your plan... At least all the "junk" would be gathered together
> into one place, isolated from the nation's primary banking system.
> Good banks should be nurtured, just as bad ones need to disseminate
> over time. Your strategy contains the key elements of the restructuring
> and would appear gradual enough to avoid any shock to the primary
> system. It would appear that "Jubilee" has come for the banks (occcurs
> once every 50 years)!
>
> I am heavily invested in MI, right now... I would say that it's
> going to be a long wait, but with the volatility we've seen, anything
> is possible (just so long as the presses keep printing). Honestly,
> I can imagine situations where MI could go either way, but I am heavily
> biased towards the positive, in this case.
>
> It looks as if our economy is going through DETOX... Recovery and
> new life (business activity) await. It may take a while and it may
> hurt, but the outcome will be something that we can be proud of in
> fifty years from now.