RE: Why the Democrats are so full of hate

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RE: Why the Democrats are so full of hate - 10/13/2011 3:00:13 PM

DomKen

Posts: 19457
Joined: 7/4/2004
From: Chicago, IL
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quote:

ORIGINAL: willbeurdaddy

quote:

ORIGINAL: DomKen

quote:

ORIGINAL: willbeurdaddy

quote:

ORIGINAL: samboct

"No, we wouldnt be looking at a global depression. Companies would have failed, companies would have been split into pieces and companies would have survived intact. Paulson and Bernanke scared the shit out of you so they could have their slush fund to play with. "

That's akin to saying that a bank run wouldn't have much of an effect, since the same results of some failed companies would be seen. Yet the history of bank runs is that they precipitate either recessions or depressions because when credit freezes businesses and economies collapse. While the fundamentals of an economy may be reasonably sound- panic can destroy a great deal of paper wealth in a hurry- and we certainly were looking at that, since major reinsurers such as AIG were in deep trouble.

Seems to me that denial of the terrible straits we were in is one of the ways that the neocons have spun things so that GWB doesn't come out looking all that bad. FDR was smarter than Obama-he blamed Coolidge and Hoover for years- and rightfully so. Bush's expansion of the debt wasn't done overnight- and like the mechanic's sign in the shop reads- "Don't expect me to fix it in the same time you took to wreck it." Perhaps Obama's biggest flaw is not telling everybody what kind of rotten shape we're in- courtesy of GWB and company.

Sam

"bank runs" wouldnt have happened. Youre in the wrong century.

you're insane. Boa and aIG would have failed without the TARP bailouts. Their assets came no where near meeting their obligations so all of BoA's depositors would have gone to the FDIC which did not have anywhere near enough liquidity to handle those payouts. No bank was big enough to take over BoA so it would have either closed down completely or been sold off in pieces over the course of many months.

A lot of people had unsecured investments and deposits in those two institutions. Simply wiping away all that money would have had a huge knock on effect through out the economy which would have resulted in, at minimum, a couple of years of 5%+ deflation. With other banks failing due to AIG failing and news of the FDIC's woes people would naturally want their money out of the surviving banks. Which means bank runs.

Youre clueless. BofA wouldnt have needed a penny of temporary TARP money if they hadnt been forced to buy ML, and they repaid it as soon as they were allowed to.

Actually BoA was posed to lose billions through its Countrywide Financial mortgages. That would have taken down Red Oak and since the acquisition deal was structured specifically to shield the main BoA corp from the known hazards of the acquisition the creditors would have had a pretty good shot at piercing the corporate veil. BoA would have been out many further billions trying to defend themselves from the creditors of Countrywide and Red Oak (which would have included a desperate AIG).

Even without ML BoA was in deep trouble and if AIG went down it was certainly taking BoA with it since BoA through Countrywide was the originator of an enormous number of the subprime mortgages fraudulently packaged in AAA rated bonds.

(in reply to willbeurdaddy)