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2008-10-09 Home Front Economy

White House considers ownership stakes in banks

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Posted by ed 2008-10-09 09:15|| || Front Page|| [6 views ] Top

#1 And how much will the 'middleman' get to skim off the 'infusion'? Do it yourself and cut out the middleman.

Taxpayers would benefit because the government would receive an equity stake in the bank in return for providing the capital

What's the equity stake of 0? What's the equity stake of owning the whole friggin bank?

Posted by Procopius2k 2008-10-09 09:34|| 2008-10-09 09:34|| Front Page Top

#2 The Euro-Ruski nesting doll model. Everything belongs inside the state. How very ingenious of Sen. Schumer.

Posted by Besoeker 2008-10-09 10:26|| 2008-10-09 10:26|| Front Page Top

#3 Are we, or at least our financial system, communist now? I'm confused, central state run financial systems are indicative of communist countries, aren't they? Does this move really fit our economic model? What is happening?

Posted by bigjim-ky 2008-10-09 10:57|| 2008-10-09 10:57|| Front Page Top

#4 The national government has been a central player since the Constitution gave the fedâs the monopoly on minting/printing money. Back in those day, and pretty much the 19th Century, if it wasnât gold or silver, it wasnât money. So, the government influenced the economy by the availability of the stuff in could get into the market system. The Bank of the United States was one of the mechanisms to do that and remained so till a feud between its director and Andrew Jackson saw it killed. So, weâve had a national bank before there was even a concept in Karl Marxâs little brain. Since then weâve had panics, recessions, a Depression, and various and repetitive shots at regulations. Human nature being what it is, youâre not going to get a pure laissez faire system and we can perceive that single state banking/market system isnât a winner either. Humans have a habit of trying to influence or control their environment. The economic one being no different. What the government can do is set a bench mark for the rest of the business to compete against. If they beat it, good. If they canât, then they have to take the riskier side of the market or go out of business. For the pubic, it becomes a trade off between lower return and security versus higher return and risk. Right now we have a library full of regulations and federal program offices that could be consolidated by creating a benchmark for competition rather than multiple bureaucracies whose basic objectives are the same.

Posted by Procopius2k 2008-10-09 13:55|| 2008-10-09 13:55|| Front Page Top

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