> RoMunn wrote: > I get your point, but I disagree. And so does the Obama Administration, > apparently. >
Yes but you disagree because, respectfully, you don't know what the fuck you're talking about. Obama disagrees because he sees 2 realistic choices: (1.) Krugman-Stiglitz: "nationalize" meaning receivership. The downsides to this option are: a.) that there's no going back and you've got to do them all: every bank all at once. No sequencing. It's an atom bomb. b.) Obama can't even get his Treasury staffed much less the 200,000 people it would take to bring these massive institutions into receivership. c.) Given CFMA, there's not clarity around the legality of this. d.) AIG, for example, has thousands of offices across hundreds of countries. How the feck would you even begin to manage the logistics of that not to mention the local politics. (2.) Geithner-Summers: "nationalize" meaning invest, stabilize, privatize. In this model you basically throw money and accounting tricks at the banks in the hopes that they can bring themselves back and thus avoid all the downsides listed above. The downside to this plan is that you don't change the structural house of cards that caused the problem in the first place. Which is why I and many others think O has a LOT of proclamations coming down the pike: new regulations, enforcement of existing regulations (essentially a change), management changes, and possibly the busting up of banks in a non-receivership way that has the same effect as receivership. The reason the market is up is because thus far O seems very banker friendly. The reason the market isn't WAY up is because that means either he's totally in the pocket of Wall Street (or their policy men) OR he's simply distracting with the left before he punches with the right. And THAT'S why people are on the edge of seats over this stress test stuff. In summary, nobody that understands what's going on would even consider your "option" except for one reason: they're a banker hoping to fool the public into thinking that's an option so they can legally avoid reaping what they sowed. In other words, you're mistaken notions are the banker's hedge: if they can fool enough people like you into thinking that an option they can politically hedge O's right hook assuming he plans to throw it. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:295449 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
