Banks Not Loaning Money: Bailout Failure

Tirjasdyn · Oct 27, 2008

This is interesting:

http://www.nytimes.com/2008/10/25/business/25nocera.html?_r=1&em&oref=slogin

“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”

Banks hoarding money and using it to buy up weaker banks, but not using it for loans (remember that's what congress said needed to happen with this money).

I'd role my eyes, but during the last two months I've over-rolled them.

whistlelock · Oct 27, 2008

I think we should bring the stocks back. and I don't mean the ones you buy and sell on the Stock Market.

Tirjasdyn · Oct 27, 2008

Lol

Given that today's the day they start writing checks, I'm not optimistic.

MattW · Oct 27, 2008

Can I get a check?

I'm a failed bank with no one borrowing my money and zero depositors!

maestrowork · Oct 27, 2008

The banks are getting the loans, not the people. Let's see how trickle-down works, folks.

Tirjasdyn · Oct 28, 2008

maestrowork said:
The banks are getting the loans, not the people. Let's see how trickle-down works, folks.

Oxymoron

Expanding their business by buying up weaker banks and otherwise keeping the money means that the banks aren't loaning each other money.

Really, I know the the theory of Trickle Down....but that never works the way intended. Most theories of government and economics don't because they fail in one significant way.

They fail to take into account human greed capacity.

mscelina · Oct 28, 2008

You know, I really hate to be the voice of reason here but did anyone really expect an immediate return to normalcy off the bailout package? The banks haven't even gotten their checks yet--how in the heck is anything supposed to trickle down.

It's dangerously ingenuous for a media outlet to produce this type of article before a single dime has had the chance to work its way into the system. *shrug* Doesn't mean I like the bailout any better, but I'm not going to call it a failure on the very first day money hits the system.

That's like finding out you're pregnant and immediately beginning to push.

shawkins · Oct 29, 2008

Here's an interesting article on the impact the credit crunch is having on international trade:

http://www.bloomberg.com/apps/news?pid=20601109&sid=aPA4NMYtDIS4&refer=home

Tirjasdyn · Oct 29, 2008

That's pretty scary.

Inkdaub · Oct 30, 2008

Tirjasdyn said:
Oxymoron

Expanding their business by buying up weaker banks and otherwise keeping the money means that the banks aren't loaning each other money.

Really, I know the the theory of Trickle Down....but that never works the way intended. Most theories of government and economics don't because they fail in one significant way.

They fail to take into account human greed capacity.

I think they do take greed into account, but as the wealthy are the real power behind the throne there is a high level of intent involved. Making the rich richer doesn't help the economy, it helps the rich. It's too bad that we, as a society, have fallen for this obvious con.

Banks Not Loaning Money: Bailout Failure

Tirjasdyn

Outline Maven

whistlelock

Whiskey Rebel

Tirjasdyn

Outline Maven

MattW

Company Man

maestrowork

Fear the Death Ray

Tirjasdyn

Outline Maven

mscelina

Teh doommobile, drivin' rite by you

shawkins

Ahhh. Sweet.

Tirjasdyn

Outline Maven

Inkdaub

wrapped in plastic