biomedlives

How Treasury Favors Banks over Taxpayers in Warrant Negotiations

If the banks wanted to avoid a government rescue of the financial system, they should have come up with their own free market solution to the crisis. They didn't, so the government had to step in.

I say that the government should forget theoretical calculations and hold an auction of the TARP warrents.

Credit Card Cancer

You're right. China's dollar holdings will give it enormous leverage in foreign affairs in the future.


On Mar 16 06:06 AM Kinja Rules wrote:

> The Chinese as well as All other Govt's of the World will always
> have their own best interests @ heart. It is a given. What is Shocking
> is that w/o a bullet fired China could easily topple the US, by sales
> in various bond related instruments. This is Really Sad. On the
> other hand, they still need US...

Credit Card Cancer

AMEN!


On Mar 14 11:06 PM WesAttaway wrote:

> A great article. My concern has always been that since the basic
> problem is that Americans have been spending more money than they
> have then how can we expect "demand" to go back to where it was.
> The answer is perfectly explained in this article. Without a continuation
> of unsupportable credit we can't do it. Smart businesses are already
> readjusting to the reality of decreased demand.

The Wonders of Mark-to-Market: Simultaneously Well-Capitalized and Insolvent

I take your point about the havoc MTM has created. Nonetheless, I'm sense that banks are often unrealistic when they set decide their quarterly loan loss allowances. As the current crisis was developing, many were setting nothing or almost nothing aside, even though loan balances were increasing.

Dividend Cuts: Who's Next?

"Banks have to understand the prospective borrowers' financial position before they issue any loans." Amen. The banks should have been smart enough to identify "predatory borrowers" who would be unlikely to repay their loans.


On Mar 05 06:40 AM philipmax wrote:

>
>
> Let's all understand, these institutions will shortly need large
> capital infusion from the sale of stock to the public. By cutting
> their dividends now these guys are going to have long term low valuations
> as the strength of their future dividends will always be suspected.
>
>
> And while we're on the subject of valuation, were all these banking
> outfits drinking the same cool-aid? How do you not know the extent
> of your risk when that is your only job? Banks have to understand
> the prospective borrowers' financial position before they issue any
> loans
>
> I would like the dividend cuts to be followed by a 20% pay cut for
> all a management., an immediate cessation of ALL stock options to
> any employee until the banks are fiscally sound.