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Old August 25th, 2014, 09:28 AM   #21
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The American banking system is the lifeblood of the world economy; that's why it had to be bailed out then. If another such crisis develops; it will have to be bailed out again!
Forget about what you hear politicians say: in such another situation; they will vote for another taxpayer-funded bailout!
My biggest issue was that there was no requirement for the banks to lend out the money (at least a decent percentage of it). All this did was create that "credit freeze".
America is a credit driven economy; citizens pay for high-ticket items like homes, cars, furniture; and more with credit. Many companies use a rolling line of credit with banks for operating costs, payroll; and other costs.
That credit freeze- in and of itself- probably was the cause of two percentage points of the unemployment rate at the 2009 level.
I don't claim to be some world renowned economist. These are just my personal observations. Obviously, you all will have your own views.
I'm not so sure the financial system would have collapsed, they just wouldn't have seen the record profits and bonuses post bailout.

They quickly paid the TARP funds back without missing a beat.

The evil banks that were too big to fail are much bigger now than then.
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Old August 25th, 2014, 09:30 AM   #22
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The CEO and CFO personally sign the tax returns and other documents. They could be charged personally if Obama's DOJ chose to, instead of allowing them to buy their way out with other people's money.
And Bush prosecuted how many ??
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Old August 25th, 2014, 11:10 AM   #23
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And Bush prosecuted how many ??
Enron WorldCom Adelphia, etc

over 2200\

The mortgage Crisis Bush opened investigations..

Obama is the one that stopped many of the investigations Corzine comes to mind as one.

Last edited by TNVolunteer73; August 25th, 2014 at 11:13 AM.
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Old August 25th, 2014, 12:10 PM   #24
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I'm not so sure the financial system would have collapsed, they just wouldn't have seen the record profits and bonuses post bailout.

They quickly paid the TARP funds back without missing a beat.

The evil banks that were too big to fail are much bigger now than then.
We disagree on whether or not there would have been a failure of the financial system or not; but please remember that just like the stock market; just the idea of the problem can- and will- cause harm.
We agree on breaking up those large banks. I just cannot see how we think it is okay to have 5 or 6 banks weilding so much power and influence! Giving any entity that much status leaves us open to "hostage politics" by such an entity. Sooner or later they will demand some special perk!
Now, we differ on just how those banks paid back those TARP funds that they recieved. I'm of the opinion that most of those banks Just sat on that money and quickly bought T-Bills; CD's; or some other financial tool instead of lending the money back into the population as a whole! Thus was borne the "credit freeze"! As such; they paid the money back with interest gained on the money given to them; and of course: reducing or outright stoppage of dividend payments to stockholders of that bank!
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Old August 25th, 2014, 12:43 PM   #25
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I'm not so sure the financial system would have collapsed, they just wouldn't have seen the record profits and bonuses post bailout.

They quickly paid the TARP funds back without missing a beat.

The evil banks that were too big to fail are much bigger now than then.
While they are much bigger now, without TARP, business and consumer loans would have come to a holt. The credit market would have seized up. Paulson argued, and I think accurately, that the banking industry came within hours of the credit market seizing up. No business loans, no home loans, no car loans and no school loans. Credit is the fuel that runs our economic engine. That trumped bonuses and record profits. You should read a book on the subject.
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Old August 25th, 2014, 12:45 PM   #26
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While they are much bigger now, without TARP, business and consumer loans would have come to a holt. The credit market would have seized up. Paulson argued, and I think accurately, that the banking industry came within hours of the credit market seizing up. No business loans, no home loans, no car loans and no school loans. Credit is the fuel that runs our economic engine. That trumped bonuses and record profits. You should read a book on the subject.
The market would have stabilized and a period of lull then start growing again, if TARP had not been passed.

And our economy would be much much better off today than it is.


and the dollar would be worth a dollar
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Old August 29th, 2014, 10:06 AM   #27
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The market would have stabilized and a period of lull then start growing again, if TARP had not been passed.

And our economy would be much much better off today than it is.


and the dollar would be worth a dollar
I'm not saying that you are wrong here, TN. I am saying that it would have been a very risky bet to make at the time! Kind of like betting that the speeding car coming at your child will turn soon; so you don't bother trying to get your child to safety! I don't think America wa ready to take such a gamble at the time; and I still don't. That's why I do not believe that should this situation happen again; that America would not do the same!
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Old August 29th, 2014, 11:26 AM   #28
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The pound of flesh is just retribution. Still, what needs to happen is severe fiscal consequence...like with big tobacco...asbestos...oil spills...etc.
I disagree about it just being a pound of flesh. There is a concept in criminal justice of deterrence. And we need a supersized serving of deterrence on those assholes.
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Old August 29th, 2014, 07:09 PM   #29
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I disagree about it just being a pound of flesh. There is a concept in criminal justice of deterrence. And we need a supersized serving of deterrence on those assholes.
The pound of flesh is my reference to actual prison incarceration...the rest is punitive monetary recompense.
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