1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Discuss politics - join our community by registering for free here! HOP - the political discussion forum

Before We Do It Again

Discussion in 'U.S. Politics' started by Greco, Feb 18, 2009.

  1. Greco

    Greco New Member

    Joined:
    Oct 9, 2008
    Messages:
    634
    Likes Received:
    6
    Trophy Points:
    0
    Soon the troubled financial institutions will be back, once again asking for more of our tax dollars to help bail them out from their own mistakes. Before that happens, it might be wise to consider four points that are a major issues with me.

    First: The concept of "too big to fail" is a flaw in the system. Until we de-regulated their industry there was no single bank "too big to fail". Now we have mega banks, with whales swallowing whales, and we're in a mess. We've tried the big is better concept and when storm clouds arrive instead of a rainstorm, we get a hurricane. One of them gets in a jam and all Americans are impacted. That's a problem that can and should be fixed.

    Second: If we have to risk our dollars in saving them from their mistakes, then we should have an equity position to recapture our investments, even sharing in the rewards when they get back on solid footing. They won't like that much, but it's only reasonable.

    Third: These troubled institutions have failed in leadership. Somebody was in charge. Somebody made the decisions that placed them in peril. The various Board of Directors, and top corporate management are all responsible. We need to re-institute regulations previously stripped away. Allowing them to run fast and loose hasn't been such a swell idea. Their collective judgment, absent of the removed boundaries, is now painfully aware to all of us.

    Fourth: If we're going to provide more of our money to them, then there must be accountability. Until they're out of the woods, they need to be on a short leash. Expectations of performance need to be defined, and their executives need to report in detailing progress, or explaining the lack of it. It should be public, which once again won't be a big hit with the would be empire builders, but it will be a learning experience for them and us. Excessive salaries and bonuses should be reigned in during the phase in which they're in peril. Frankly, they probably don't think like this, but they should just feel lucky just to keep their jobs after the mess they made. And certainly, no millions of our dollars going to "executive retreats", new corporate jets, or $6,000 shower curtains while we're partnered up with them.

    The time to consider these measures is now, before they show up with their hands out. It's not a negotiation, it's the requirements if they want more of our money.
     
  2. poptart

    poptart New Member

    Joined:
    Jun 28, 2008
    Messages:
    37
    Likes Received:
    0
    Trophy Points:
    0
    Well there are a couple that if they failed, would hurt the economy. But when Bush just handed the banks the first 350 billion, no strings attached, was the biggest blunder in history. The next part of tarp will be used to buy down the bad debt.
     
  3. Mr. Shaman

    Mr. Shaman New Member

    Joined:
    Nov 27, 2007
    Messages:
    7,829
    Likes Received:
    12
    Trophy Points:
    0
    ....But, FIRST....John Boner & The Boys need to get another whiner-fix.

    :rolleyes:

    These Republicans need to move-back-in with Mom. She (obviously) tolerated this kind o' sophomoric-behavior.

    :rolleyes:
     
  4. Depeche Toad

    Depeche Toad New Member

    Joined:
    Feb 17, 2009
    Messages:
    91
    Likes Received:
    1
    Trophy Points:
    0
    I look forward to the doomed Obama administration that will be an utter failure if it persists in picking winners and losers in its Savior Economy.
     
Loading...

Share This Page