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Which is the least bad way of fixing the banking system?


wiegie
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Which do you prefer?  

12 members have voted

  1. 1. Which do you prefer?

    • Temporary Bank Nationalization
      7
    • A Direct Transfer of Wealth from Taxpayers to Banks
      5


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Where is the Puddy option? Both choices suck. I don't believe for a moment that if they are nationalized that they will ever be anything but, and it scares me that they will base loan rates the same way they do tax rates, and we will be farther down the road to socialism. I don't like the second option any more than the first, but could see it as a loan if we must where the banks have to pay what they borrow back with interest. Additionally if you got rid of mark to market, wouldn't that significantly reduce the current problem, and give them the cash flow they need?

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did h8tank help you write this poll?

If you have some insight into what other plans Bernanke, Geithner et al. are considering, I'd be glad to hear them. (And to be honest, it really only seems like they are seriously considering one of the options I have listed.)

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it scares me that they will base loan rates the same way they do tax rates,

Why do you think this will happen? This is the second time you've mentioned this and we both know it would be rank bad business. Is there an existing example of this happening elsewhere?

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Why do you think this will happen? This is the second time you've mentioned this and we both know it would be rank bad business. Is there an existing example of this happening elsewhere?

 

 

One thing to consider is that the gov't has the ability to borrow money at a rate lower than private banks so they will have a leg up on the competition. Also, who is going to underwrite these loans? Congress?

 

Is a gov't run bank going to pay taxes? (Credit Unions don't but no one gripes about that)

Edited by T-Scorp
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One thing to consider is that the gov't has the ability to borrow money at a rate lower than private banks so they will have a leg up on the competition. Also, who is going to underwrite these loans? Congress?

 

Is a gov't run bank going to pay taxes? (Credit Unions don't but no one gripes about that)

Perch seems concerned that there will be preferential rates for political supporters.

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Why do you think this will happen? This is the second time you've mentioned this and we both know it would be rank bad business. Is there an existing example of this happening elsewhere?

 

No real example, it just seems as though it would be easy to do, and just one more way for politicians to pay back their supporters. I also can see a situation where it becomes from each according to his ability to each according to their need. What's to keep them from saying well this guy can afford a loan at 10% so we will make him borrow money at 10%, and this poor guy can't afford a loan, but we'll give him one because he'll vote for us during the next cycle if we do so we give him a $100,000 but he only has to pay back $90,000 over a 30 year period. I may be bat chit crazy but I see our country leaning closer and closer to socialism and I'm a staunch capitalist, so it scares me.

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