mgv11

'Nationalize Insolvent Banks': Buffett Didn't Get Roubini's Memo

A breath of fresh air, the damage is done to the banks, recovery is now the issue. So let me ask, why are we so gung ho to seperate these toxic assets from the banks to "the smart investors"? Because they have more value than ever before! I almost want to call it a conspiracy allowing the wealthy to get wealthier.

But back to the recovery of the banking system, what turns it around? the new investors? the new bankers? the ones who just bought the toxic assets? Seems inconsistent to me... it is simply a transfer of future wealth to the current rich from the common equity owners who were recently wiped out. By liquidating all the banks in trouble to those buyers who didn't get wiped out... and they will be using the toxic assets to make their money.... I'm sorry my money, Mr. Common Equity holder.

To Merideth Whitneys current point... credit card debt, really what she is saying is SELL it now before the disaster hits. I'm thinking the toxic asset investors don't want it yet. The time to sell it was 2 to 3 years ago.

The banks have dug themselves a hole, time will heal many of them, not all, we're seeing failures every friday. Right now, I'd rather see the common equity owners ( yes that means gov't too) who have taken a beating have a shot at riding the wave of the future as they recover vs transfering these assets to private investors who quite honestly probably don't need it... and does anyone know for sure they can help the economy? I'm thinking they've put on their protective clothing and waiting for the disaster to bottom, then they'll step in and help. I'll bet the current banks are more motivated than these investors. The ironic part is when stepping in at the botton you look like the saviour but in reality all they are is opportunist with better timing.

Just a thought