The other side of "bailing out foreign banks"

There is another side to this story.

Foreign banks bought, in good faith, those falsely labeled mortgage packages from the US mortage banks, just like other US banks and pension funds did.

If the US government bails out only US banks, then the foreign banks would NEVER EVER do business with US banks again.

If you think that this country can survive without investment capital from foreign countries, then go back to your garden and tend to your squash.

If we want to be a global player, then we have to play by the rules.

they feel they've been sold down the river. US firms repackaging bad debt and selling it several times as a AAA paper, then selling to an overseas fund.

Trust is all but destroyed.

They should mind their own fucking business and stop poisoning people and animals with melamine. :mad:

why did they buy the AIG default insurance just so they could avoid having the required default reserves? They did that because they knew it was too risky, just like our banks. Caution wasn't on their minds, only avoiding restraints and gambling as big as possible.

Who says they're going to lend to us ever again anyway? I doubt that they will anyhow. It'll be ever increasing enticements demanded. We'd be better off letting the government be a bank and make new mortgages to us directly and receive payments back. After a while, the private guys would want in on it. Especially if we don't slice them up, but require them to stay whole. Then at least, investors know what they're buying. The stupid insanity has to stop now. At least we don't have to create any more of it.

Besides, if homeowners can fail, why not the banks? They will anyway, if the underlying assets (homes) aren't protected first. It's just throwing good money after bad.

debt obligation for just THIS program grows from 2300 per person - to what 3,000+ per person - and then Paulson revises to include backing college loans and other loans - so what in the end will be our individual (read - at some point we will have to pay) obligation - 5,000+ - 6,000+ ?? So a lower income family of four should have their individual debt to the govt shoot up by 20,000+ to cover this bail out? That same family that FEMA couldn't get ice to in Houston in the Ike aftermath?

While I understand your point - how much more (over time) are you willing to pay/owe to the federal government to pay for this growing, massive bailout? A bailout with no oversight? I, for one, am horrified by what keeps coming out per Bernanke's proposed plan.

If they didn't know what were getting into they don't belong in the business, just like their U.S. compatriots.

No one forced forced them to buy this garbage.

It's easier to blame it on the U.S. than to admit that they messed up big time and they're not as smart as they thought they were.

THEM'S the rules.