This week, banks ran into yet deeper crisis: the sector is in more trouble than was feared. As Ben Bernanke, chairman of the US Federal Reserve, noted in a speech in London this week, however, economic recovery will not begin until the financial sector recovers its health. Governments must act.
In October, following a British lead, governments around the world recapitalised their banks. This drastic measure saved the sector from collapse. But, as the events of this week have demonstrated, the banks are still on the ropes….
Governments must now act swiftly to move ahead of the crisis. Ad hoc nationalisation of insolvent banks and recapitalisation of impaired ones is simply not enough. Governments must act to draw out the poisonous uncertainty caused by the toxic assets held by solvent banks.
Well, BAC got busy buying other banks with their bailout money. They were not alone. Many banks used the “bailout” to buy other banks and improve their capital position. So far, from what I understand, the TARP funds have not done what they were supposed to do. None of the “toxic debt” was purchased.
We are just transferring wealth, not fixing the credit crisis.
This is jus more theft by the armed government bandit, robbing from the poor to give to the rich. I have news for those in power. There is a God. He is watching. He will repay. He is an advocate for the poor and stealing from them is one of those things that really get Him angry. You may be congratulating each other behind closed doors on the fine swindles you are pulling off, but the clock is ticking.
God hates cheating in the marketplace; he loves it when business is aboveboard. Proverbs 11:1 (MSG)
God hates cheating in the marketplace; rigged scales are an outrage. Proverbs 20:23 (MSG)
Question: How many of the banks in trouble came into being after Government aid was first talked about?? Nuff said!!