Gov't to take over banks????

What's going on in Washington, D.C.?

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Rotgirl
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Gov't to take over banks????

#1

Post by Rotgirl »

http://www.thinkbigworksmall.com:80/myp ... 02/1078332

I never thought this would even be discusses in America.......

FYI......These guys post a daily video centered around the mortgage, banking, real estate industry. It's free to subscribe.

They are always informative; sometimes funny.

Ciao....rg
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Mithras61
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Re: Gov't to take over banks????

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Post by Mithras61 »

It seems unlikely to me that the Feds will be forced to nationalize the biggest banks despite that they continue to engage in the same types of activities that caused the crisis in September 2008. Why shouldn't they continue their irresponsible ways? After all, when they almost crashed the entire system by their irresponsible behavior, the Feds stepped in and ensured (at our expense and to the tune of $25 Trillion, or so) that their shareholders suffered no losses, so they have no incentive to change their ways (the Feds will surely step in again, right?).

I would bet, however, that before that happens, the Feds will step in and begin forcing the biggest banks to divest themselves of some of their regional parts (as in break them up so they aren't "too big to fail"), and also begin both enforcing existing regulations, and creating new regulations to prevent future occurrences (the new regs are unlikely to be effective, given that they will most likely be written by the banks they will supposedly regulate, but that's a different beef).

Mike Shedlock of Mish's Global Economic Trend Analysis has some very well written and generally incisively (and accurately) written commentary on our economic situation and what's likely to happen in the future. He has been quite accurate in his predictions about the what & when of economic happenings for quite some time now, so if you're into that stuff, he can be a fascinating read.
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