On Mar 10, 2009, at 11:33 AM, Lawrence Sica wrote:

>
> On Mar 10, 2009, at 2:19 PM, Chris Gehlker wrote:
>>>
>>> No, they are hiding two things.  One is who got the money.   The
>>> other is what happened to it.  The latter will be harder to pin down
>>> I am guessing because my hunch is it was poorly accounted.
>>
>> Well, If you really believe that the banks simply lost track of the
>> money you need to explain why we should give them more as opposed to
>> arresting the executives and seizing their assets. If you personal
>> financial advisor told you 'Sorry, I seem to have misplaced your
>> money. I don't know what happened.' would your impulse really be to
>> cover it up?
>
> I did not mean the banks.  I meant the Bush admin.

I don't understand.
>

[snip]
> Sweden and Japan are not exactly stellar examples right now.

Sweden is *the* stellar example. Japan is only criticized because the  
propped up their zombie banks for 10 years and nothing got better.


> What I mean is "creative accounting" to control how these looked and  
> the actual risk involved plus the use of various loopholes to let  
> other things happen.  Sorry I did not think I had to spell that  
> out.   You've had issues where loss was being seen but not reported  
> in a timely manner or just plain ignored for short term appearances  
> of profit.  You also had lenders in essence double dipping with  
> regards to these bad loans and making money off the hope it would  
> foreclose when prices were high.  You also had manipulation of  
> various markets.  It's not just simply "cds was bad."

This still sounds like you think covering up fraud, and giving those  
who committed the fraud more money, is a good idea. How can a run on a  
bank be a bad thing if the bank is a criminal conspiracy?
>
>
>>
>>>
>>
>> You need to tie this together, Larry. The question isn't 'Do you  
>> banks
>> have a lot fewer assets than you  claim?' which goes to confidence.
>> The question is 'What did you do with the TARP money?'. To the latter
>> question I can't imagine a more confidence destroying answer than "I
>> won't tell you." unless it's "I don't know."
>
> Well see if you publicly make every bank who got TARP money declare  
> what they did with it doesn't that mean saying who did it?   Like I  
> said before do it in private for now, when the time comes make it  
> public.  I am tying it together, you just are not listening beyond  
> your premise it must be made public now.

I'm not understanding.

-
God must have loved the people in power, for he made them so much  
like  their own image of him.
-Kenneth Patchen

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