Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

[Jim Nickerson]

Re: Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

Jim,

Is this an allegory or an actual happening?

If real, did you really give your mom rotten fruit and vegetables?

And does this mean you approve of the Paulson plan...because you "feel his pain"? :eek:

Not being very creative in writing, it is a poor allegory. Mom is long deceased.

I think all businesses that prove themselves to be non-viable entities should do what they have always done: fail.

I think life-support for humans that are brain dead is a waste in all respects.

I think the goddammed banking system should fail in every instance where were there no such thing as a bailout it would fail.

I think the American people, including me, should suffer the consequences of the system because it is we who have allowed it to flourish.

Until and if ever something severe happens in this country to make it change, it will keep going down the path of least resistance for the politicians.

[Kimmons]

Re: Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

My family and I are with Jim. Hi everyone, fitting that I find this forum at a time like this.:rolleyes:

[goldy675]

Re: Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

I think all businesses that prove themselves to be non-viable entities should do what they have always done: fail.

I think life-support for humans that are brain dead is a waste in all respects.

I think the goddammed banking system should fail in every instance where were there no such thing as a bailout it would fail.

I think the American people, including me, should suffer the consequences of the system because it is we who have allowed it to flourish.

Until and if ever something severe happens in this country to make it change, it will keep going down the path of least resistance for the politicians.

Jim, I agree emphatically with each and every word you have written here.

[marvenger]

Re: Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

People need to educate themselves about their rights, otherwise they're ripe for enslavement and the current banking system is a very subtle means of enslavement with freedoms real and imaginary; but you have to keep giving up freedoms in order to maintain the system that is supposed to be working so well for you. The system was designed for this to occur, Bernanke and Paulson aren't dumb, its all happening as planned, its up to the people to stop them. The quickest way to get things on track IMO is to support Ron Paul, this guy has been studying his rights and economics for a very long time and wants to change the system. My only problem with him is that he seems to be a bit fixated on Austrian economics and I don't like ideological anything but I think he's by far the best person to support if you think washington is corrupt and you want to implement change. But do your own research Jim and support something otherwise these people will just continue building their empires.

[jimmygu3]

Re: Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

As long as they aren't paying more than 100%, people should be happy I guess.

I have been thinking about this and wondering if a kind of "pawn shop" principle could be applied. Give the banks market value ($.10 on the dollar in many cases) for the toxic crap. If they don't like the deal, they have the right to buy it back within a specified time at the sales price plus interest. After that period, the Treasury could sell the securities at any time. Maybe the banks could get a slice of the profit, and/or have right of first refusal to buy them.

Seems like there would be no need to intervene in executive pay, if the gov't is only paying market price. Banks would have an incentive to be frugal and survive, putting their own restrictions on executive pay. If a company was irresponsible enough to invest billions in junk mortgage derivatives, and dumb enough to give executives bullet-proof golden parachutes, they're not too big to fail: they're too stupid to survive.

Jimmy

[phirang]

Re: Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

I have been thinking about this and wondering if a kind of "pawn shop" principle could be applied. Give the banks market value ($.10 on the dollar in many cases) for the toxic crap. If they don't like the deal, they have the right to buy it back within a specified time at the sales price plus interest. After that period, the Treasury could sell the securities at any time. Maybe the banks could get a slice of the profit, and/or have right of first refusal to buy them.

Seems like there would be no need to intervene in executive pay, if the gov't is only paying market price. Banks would have an incentive to be frugal and survive, putting their own restrictions on executive pay. If a company was irresponsible enough to invest billions in junk mortgage derivatives, and dumb enough to give executives bullet-proof golden parachutes, they're not too big to fail: they're too stupid to survive.

Jimmy

Bankrupt companies often richly reward executives.

[jimmygu3]

Re: Bernanke Urges Against U.S. Buying Assets at `Fire-Sale' Prices

Bankrupt companies often richly reward executives.

Exactly, and the shareholders get what they deserve for letting it happen. At least the Treasury would be holding securities they didn't overpay to get. The banks that avoid bankruptcy will have to limit compensation on their own, among other cost-cutting endeavors.

Any executive pay cap they put into the bill will have more holes in it than the plot of National Treasure. If the money's there and the board isn't stopping them, execs will find a way to pocket whatever they can.

Jimmy