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To: Rocket Red who wrote (144600)	1/31/2009 12:36:23 AM
From: GC	1 Recommendation Read Replies (1) \| Respond to of 313017

like I said before give every one a 100 g' or what ever amount million $ and let them get things rolling pay off their debt , buy new cars , deposit the cash . government gets a return through taxes :))))) they get a return back more than they would by giving it to the banks and bail outs :) they lost that much now , banks giving it away as bonuses only in America god bless America sing the National anthem , is God really looking to bless America now hmmmmmmmm don't think so .... God must be on another task .......................

To: Rocket Red who wrote (144600)	1/31/2009 8:27:33 AM
From: robnhood	Read Replies (2) \| Respond to of 313017

<< JUst wipe the slate clean and start over lol>> robertreich.blogspot.com <<Yet the real issue here isn't about day-to-day operations. It's about something much larger. Put simply, the big banks are going under. No one wants to say this out loud for fear of causing even more panic, but the fact is that many of these banks are insolvent. Their assets are worth far less than their face value because so many borrowers can't -- or won't be able to -- repay the loans. Six months ago it may have made sense for the government to buy up so-called "toxic assets," based on home mortgages that should never have been issued. Three months ago it may have made sense to establish a "bad bank" to store them in, until they could be resold. But as the Mini Depression worsens, "toxic assets" are no longer all that distinct from a vast and growing sea of non-performing or endangered loans on the banks' balance sheets. Toxicity has spread to loans made to people and companies that were good credit risks as recently as early last year but are now bad risks. You don't have to be an honest financier (no oxymoron intended) to figure this out: Ten percent of Americans are behind on paying their mortgages. Millions more are behind on paying their credit-card bills. Hundreds of thousands of small businesses are behind on paying their own bills. Auto suppliers are can't pay their bills. And so it goes. A "bad bank" collecting all these non-performing or in-danger-of-becoming non performing loans might well become larger than the rest of the banking system -- nationalization through the back door of lemon socialism, where the government (and taxpayers) own and control this vast sea of junky loans. Geitner et al have to think bigger, and examine history. Back in the banking crisis of 1907, J.P. Morgan got all the major bankers into one room and forced a kind of reorganization on all of them. We need the same today -- a giant reorganization of the banks, in which their shareholders lose what little value they have left, their creditors get paid 20 cents or so on the dollar, and their assets are written down to about 20 percent of their face value. In effect, it's an industry-wide reorganization under bankruptcy. This way, bank balance sheets are cleared up, there's no run on any one bank, everyone starts anew, and taxpayers aren't left holding the bag. To the extent Geitner is serious about preserving a truly private financial system, this kind of broad-based reorganization of the entire sector in the shadow of bankrutpcy, seems to me to be the best alternative at this point. posted by Robert Reich \| 1:47 PM