Fed, global central banks move to boost financial system

[bfdd]

TBTF needs to end but it needs to be done in a way that extracts the franchises and takes away the systemic risk. I don't really feel like living through a depression just because of the mistakes they made and unfortunately that is the risk that the TBTF put us through on a daily basis. Lot's needs to be done to fix both the economy and banks worldwide. As a nation we are fairly productive and the cost of labor has come down. There is going to be a few years of hard slog but I do think we come out the other side in better shape.

Maybe you are right though maybe the US needs a reboot. Simply put it seems like in this world there are too many people that have too much money.

I think we need a reboot if we want to survive as the USA. If we keep up down this path we'll probably Balkanize.

 

[Nemesis 1]

I believe more or less that I answered your actual question (the collateral requirements for the ECB are listed and fairly stringent although not SNB stringent but I digress) and also made fun of you for thinking that there is some secret consortium outside the scope of the world that owns these banks...it seemed obvious didn't it?

Twisty fella aren't ya . These Corporate Heads that OWN these centrel banks . Who is THE actual I own you all GUY?

 

[halik]

Twisty fella aren't ya . These Corporate Heads that OWN these centrel banks . Who is THE actual I own you all GUY?

The rothchilds and the guy that pulled the towers in 9/11. The two might even be the same person :-o

 

[werepossum]

Not at all, I think all the TBTF should be split into many parts. There is a difference between saving them and breaking them up however and letting them fail. Within 10 years I would like to see BAC/C/GS/JPM/STT/WFC/BCS/HSBC/RBS/BNP/C Agr/SocGen/DB/STD/UBS/CS and possible ING, Standard Chartered, Lloyds (even though it is basically a government ward) Mitsubishi, Nomura, China Construction Bank, Mizuho and the Bank of China all split up into little tiny pieces and possibly some others that I can't think of.

From a capital markets perspective you would have imo better banks going back to Glass-Steagal (but it needs to be done worldwide otherwise there is huge competitive arb) and you would have some of the biggest IPOs of all time for some good franchises.

USB has proven you can run a bank like a bank and still make money. Cantor Fitz is proving and has proved you can run a securities firm like a securities firm and still make money. You don't need to get into every facet of the world economy from commodities to business advising to securities trading to credit cards to retail lending to business to government lending, etc. etc...full disclosure I may own some USB or I may not I am not sure if my stop hit or not.

Now you've said something with which I totally agree. (Not that I necessarily disagreed with your previous posts, I just lacked the knowledge to decipher the jargon and have an opinion.) Anything truly too big to fail should be saved, but then broken into parts that aren't too big to fail. Instead, we've merely helped them become bigger. And we should have forced agreements regarding bonuses and layoffs; too big to fail should not mean too big to miss our quarterly bonuses, even if legally it takes a structured bankruptcy to do this, and if we are saving these entities for the jobs then we should doubly insist on cutting bonuses instead of jobs.

I would like to see Glass-Steagall reinstated even if only for the USA. I don't buy the argument that they have to be able to invest in both to compete, since most of them went broke doing so and had to be saved with tax dollars. If we force our financial institutions to pick a sector and then refuse to bail out foreign banks, I suspect the market will largely regulate itself through bankruptcies without our being devastated.

 

[dmcowen674]

It's all about making the rich richer and the poor die.

Certainly takes care of the population control problem.