Interesting Approach to Avoid Socialist Style Bailouts

[BigPapaVol]

John Taylor: How to Avoid a 'Bailout Bill' - WSJ.com


Seems to me that the government still ends up with too much discretionary power here, but this is a much better alternative than straight up guv'ment cheese.

 

[droski]

seems like it woudl be hard to avoid politics as usual

 

[BigPapaVol]

seems like it woudl be hard to avoid politics as usual

Definitely doesn't cut the guv'ment out of te decision making role, but financial institutions can't have that as the gov't provides tge backstop insurance that garners them depositors and investors. Specialty situation, but this makes sense to me.
Posted via VolNation Mobile

 

[Velo Vol]

Glass–Steagall.

 

[BigPapaVol]

Glass–Steagall.

What about it?

 

[droski]

the gov't still bailed out multiple to big to fail companies before glass-steagall.

 

[BigPapaVol]

the gov't still bailed out multiple to big to fail companies before glass-steagall.

yes. Too big to fail isn't a new governmental excuse.

 

[droski]

and let's also not forget that AIG, Fannie, Freddie, GM and chrysler wouldn't have been prevented by repealing glass-seagal..

 

[BigPapaVol]

and let's also not forget that AIG, Fannie, Freddie, GM and chrysler wouldn't have been prevented by repealing glass-seagal..

not one. All the people beating up the investment banking arena tend to forget that the lending arms of guys like GE and GM are enormous.

Glass Steagal also wouldn't have helped any of the regional guys sans securities depts to avoid real estate devaluations eating all of their capital.

 

[droski]

i'd love to know (outside of being obama's buddy) why GE didnt' get it's stock diluted despite issuing many tens of billions of gov't insured paper.