Bloomberg: Is There Enough Money to Save the Banks?

(Bloomberg) Forget free-market fundamentals. What matters most to the capital markets now is whether the governments of the U.S. and western Europe have the will and the wherewithal to save the global financial system from disaster yet again.

A healthy climate for the efficient allocation of capital, this is not.

By pledging to keep its benchmark interest rate near zero through at least mid-2013, the Federal Reserve succeeded (for a couple of hours) in propping up U.S. stock markets after two days of gut-wrenching declines, especially in financial stocks. The news came a day after the European Central Bank embraced the role of savior by buying sovereign debt of Italy and Spain, sending yields on those countries’ bonds plunging and offering respite to financial institutions that hold them.

The notion that the world’s governments won’t permit an economic meltdown seemed to be operative, less than two weeks after the U.S. Congress threatened to torch the nation’s full faith and credit. Then yesterday the equities markets fell out of bed again. The open question is how long investor confidence in the policy makers’ powers can last. .............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-11/is-there-enough-money-to-save-world-s-banks-commentary-by-jonathan-weil.html

all we hear is how the markets need to free without government intervention
so it is just god's will if the banks fail

http://www.youtube.com/watch?v=q6vi528gseA

And now we know how we got in this F'en mess with logic like that.

Really.

all over the place in the past few days. Why are they suddenly starting to get all concerned about this right now (as opposed to the past few years)?

If you confiscated all the wealth in this country is it enough? Do we need to go that far? We lost this country along the road somewhere, and it started in the 80's.

We need to remove all the commercial banking from retail banks. We need to remove the insurance companies, etc. from retail banks.

We need more retail banks that are smaller banks. It's the bigness that breeds the high risk-taking of those who believe they're "too big to fail".

Smaller banks can always join in together to make big loans if it's appropriate.

Smaller banks compete more effectively, benefiting the consumer.

collect the interest ourselves to solve part of the debt problems? The banks don't deserve another chance to sit on the money.

Re-regulate the banking industry, re-install Glass-Steagall, and sell the banks back for a profit to the public. This is what Paul Krugman suggested in 2008 the first time in his book "Return to Depression Economics." So, here we are three years later and in a worse position financially. Let's get it done right this time. No more TBTF. It was a Wall Street scam that has cost the public trillions of dollars.

other than an entrenched domestic enemy of the U.S. Constitution. :patriot:

Did the same people steal it who stole it the first time?