Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (26602)	1/28/2010 7:13:57 AM
From: Real Man	Read Replies (1) \| Respond to of 71463

Nope, they do it to protect the system from blowing, since typically if the banking system collapses, the govt. finds itself immediately bankrupt as well. I agree, there are favorites according to lobbyist efforts. Some are let live, some must die, some had shotgun marriages (Bear, ML, etc.) The policies were inconsistent, full of moral hazard and panic. This was not done to pay the criminals (although AIG save might have had something to do with Paulson and Goldman's position) In particular, since Goldman/Morgan had derivative positions offsetting their risk, they benefitted from the govt. save and systemic failure, it was derivative chain reaction that the govt. was trying to prevent. Derivatives are just bilaterial agreements that shift risk around, offloading it on "weak links". The situation is messy and dangerous. The govt will print to raise asset prices and stabilize the situation, and this won't result in huge inflation, but it may not work.

To: Skeeter Bug who wrote (26602)	1/28/2010 7:28:57 AM
From: Real Man	1 Recommendation Read Replies (3) \| Respond to of 71463

Lynch this guy. He caused the rush. -g/ng- usatoday.com

To: Skeeter Bug who wrote (26602)	1/28/2010 8:25:11 AM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71463

I really don't like what AG did. The maestro, an Austrian school economist, he knew exactly what he was doing. Ben actually popped the Re bubble when he came. BWDIK? Hank's reasons for bailing out AIG seem criminal, but I don't think Ben, who is in hot water, is a crook. Geithner looks like one. Folks in Senate/Congress mostly stayed in their places as the Administration changed. So, the crooky types are still there. Some Dems, some Reps, much has come out, so, having to resign. As long as the pain lasts, the mob will go after banksters. Some will go to jail eventually, but bankrupting them will cause much more pain, not less.