Obama begging bank to get money to Main Street

[Zebo]

WASHINGTON - President Barack Obama challenged top bankers Monday to explore "every responsible way" to increase lending, saying they were obliged to help after being rescued by taxpayers.
http://www.google.com/hostednews/ap/article/ALeqM5g329PVTvx5Q8z9ftsZ9y4vh1Un8QD9CJBKOO0
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Banks get trillions of free taxpayer money...but not lending to citizens or small business as predicted. Obama just doesn't get it. Banks can't lend because businesses and people are tapped to the max. Then when you give investment bankers money they are going to speculate with Fed money instead of invest in tired old production at low rates.

There is only one way out and that's restructure all consumer and business debt. Read: possession is yours and start over.

 

[LegendKiller]

WASHINGTON - President Barack Obama challenged top bankers Monday to explore "every responsible way" to increase lending, saying they were obliged to help after being rescued by taxpayers.
http://www.google.com/hostednews/ap/article/ALeqM5g329PVTvx5Q8z9ftsZ9y4vh1Un8QD9CJBKOO0
------------
Banks get trillions of free taxpayer money...but not lending to citizens or small business as predicted. Obama just doesn't get it. Banks can't lend because businesses and people are tapped to the max. Then when you give investment bankers money they are going to speculate with Fed money instead of invest in tired old production at low rates.

There is only one way out and that's restructure all consumer and business debt. Read: possession is yours and start over.

Banks, nor businesses or consumers are "tapped to the max". Debt service ratios are still in the maintainable level.

AS far as wiping out all debt, that's the most moronic idea ever.

 

[Xellos2099]

I think it have to do with the risk of lending money to people who have little or low chance of repaying the loans.

 

[Zebo]

Banks, nor businesses or consumers are "tapped to the max". Debt service ratios are still in the maintainable level.

AS far as wiping out all debt, that's the most moronic idea ever.

The jig is up, banks know it, consumers who cant pay their bills know it only Obama and you apparently doesn't know it.

 

[LegendKiller]

The jig is up, banks know it, consumers who cant pay their bills know it only Obama and you apparently doesn't know it.

So all you've done is shown me % increases of income and debt. That does nothing to show being "tapped out".

 

[CallMeJoe]

The jig is up, banks know it, consumers who cant pay their bills know it only Obama and you apparently doesn't know it.

"There are three kinds of lies: Lies, Damned Lies, and Statistics".

Benjamin Disraeli

 

[spikespiegal]

Banks, nor businesses or consumers are "tapped to the max". Debt service ratios are still in the maintainable level.

Sure...as long as the Chinese keep buying the debt. At some point their bubble is going to burst and U.S. interest rates will have to go up.

Here's a concept: lets move finance and 'money shuffling' away from the center of global commerce and actually get back to making things again.

 

[LegendKiller]

Sure...as long as the Chinese keep buying the debt. At some point their bubble is going to burst and U.S. interest rates will have to go up.

Here's a concept: lets move finance and 'money shuffling' away from the center of global commerce and actually get back to making things again.

Yes, because capital allocation controls the shift in population and society. Really, get a grip, societies undergo a natural progression of maturity. Unskilled to skilled to service/IP is the natural progression.

Mobilizing our society to become higher-level providers of services/IP is far better than "making things". Any mongoloid can run a stamp press. It takes a truly intelligent and trained person to program, create finished products, and develop/produce cutting edge healthcare technologies.

 

[Genx87]

Yes, because capital allocation controls the shift in population and society. Really, get a grip, societies undergo a natural progression of maturity. Unskilled to skilled to service/IP is the natural progression.

Mobilizing our society to become higher-level providers of services/IP is far better than "making things". Any mongoloid can run a stamp press. It takes a truly intelligent and trained person to program, create finished products, and develop/produce cutting edge healthcare technologies.

LK these are the same people 120 years ago who thought we should be an agricultural based society and make food, not sprockets. I mean what good is it to make a sprocket if we cant eat????? Little did they realize that manufacturing made agricultare more productive. Just like our service\ip based society is making our manufacturing expand with a rapid decrease in required manpower.

Anyways our fascination with a 1950s style manufacturing economy has to go. What is safer and less physically demanding? Working in a cube or running a stamp on a production line?

 

[Jhhnn]

Yes, because capital allocation controls the shift in population and society. Really, get a grip, societies undergo a natural progression of maturity. Unskilled to skilled to service/IP is the natural progression.

Mobilizing our society to become higher-level providers of services/IP is far better than "making things". Any mongoloid can run a stamp press. It takes a truly intelligent and trained person to program, create finished products, and develop/produce cutting edge healthcare technologies.

Sounds peachy, LK, but average people have average intelligence, average education, average skills, and need average jobs. Manufacturing furnished that and drove the expansion of the middle class in Post-WW2 America. You propose to replace it with what, exactly, that will maintain the middle class? All those average people?

Which is not to say that I agree with Zebo's pov, at all, but "financial products", hightech innovation and elitist attitudes won't fill the gap, either. Hell, they'll just offshore production to China, anyway... And we just proved that selling houses to each other at ever increasing prices won't work, either...

 

[glenn1]

Sounds peachy, LK, but average people have average intelligence, average education, average skills, and need average jobs. Manufacturing furnished that and drove the expansion of the middle class in Post-WW2 America. You propose to replace it with what, exactly, that will maintain the middle class? All those average people?

Which is not to say that I agree with Zebo's pov, at all, but "financial products", hightech innovation and elitist attitudes won't fill the gap, either. Hell, they'll just offshore production to China, anyway... And we just proved that selling houses to each other at ever increasing prices won't work, either...

And to extend your mindset, why not try to maintain the U.S. position in subsistence farming for those with below average education and skills - after all, that's about all that vast numbers of inner-city dropouts can handle.

But to answer your question, even if we did exactly what you proposed, those manufacturing jobs would STILL go away because of the high cost of labor here (in relative terms to other countries). Even if you could somehow ban imported goods, the higher labor costs would price many U.S. manufactured goods above their marginal utility value for many consumers.

 

[Zebo]

And to extend your mindset, why not try to maintain the U.S. position in subsistence farming for those with below average education and skills - after all, that's about all that vast numbers of inner-city dropouts can handle.

But to answer your question, even if we did exactly what you proposed, those manufacturing jobs would STILL go away because of the high cost of labor here (in relative terms to other countries). Even if you could somehow ban imported goods, the higher labor costs would price many U.S. manufactured goods above their marginal utility value for many consumers.

So then who does the right blame those on public assistance? If they have been displaced and are average or even below average shouldn't we re-think this paradigm of calling them deadbeats since there is nothing for them?

 

[Patranus]

The banks should just give Obama administration the middle finger.

The Obama administration is out there every other day vilifying banks and their CEOs and now wants them to help him out.

 

[StageLeft]

LK these are the same people 120 years ago who thought we should be an agricultural based society and make food, not sprockets. I mean what good is it to make a sprocket if we cant eat????? Little did they realize that manufacturing made agricultare more productive. Just like our service\ip based society is making our manufacturing expand with a rapid decrease in required manpower.

Anyways our fascination with a 1950s style manufacturing economy has to go. What is safer and less physically demanding? Working in a cube or running a stamp on a production line?

Running a stamp IN a cube Best of both worlds.

The Obama administration is out there every other day vilifying banks and their CEOs and now wants them to help him out.

Then why is his administration full of bank execs? He is not villifying them at all. The occasional slightly negative column at the most. He is in the pockets of the banks just as much as Bush, it seems.

This is all pathetic grandstanding. If he wanted banks to lend he'd not ask, he'd tell. He runs the government, something that the banks clearly rely on hugely to stay solvent in the last year and continue business. Why isn't he wielding this stick? Oh, it's because he has a banker's stick up his ass.

 

[1prophet]

Yes, because capital allocation controls the shift in population and society. Really, get a grip, societies undergo a natural progression of maturity. Unskilled to skilled to service/IP is the natural progression.

Mobilizing our society to become higher-level providers of services/IP is far better than "making things". Any mongoloid can run a stamp press. It takes a truly intelligent and trained person to program, create finished products, and develop/produce cutting edge healthcare technologies.

Many of those machines today require highly skilled workers with at least a concept of working mathematics including trigonometry and its usually those same people you refer to as mongoloids that work with the manufacturing engineer to help make possible what the design engineer didn't think of when creating the product.

Hiring some mongoloid as you put it is a sure way to end up with a worthless batch of parts.

 

[StageLeft]

Many of those machines today require highly skilled workers with at least a concept of working mathematics including trigonometry and its usually those same people you refer to as mongoloids that work with the manufacturing engineer to help make possible what the design engineer didn't think of when creating the product.

Hiring some mongoloid as you put it is a sure way to end up with a worthless batch of parts.

Many do but many don't, it really depends on the line. I have seen with my own eyes humans doing tasks that a monkey, literally, could be trained to do. Maybe not with quite the success rate, but it's truly that easy. Training for it would take a standard human under 5 minutes and they will do it all day long, it's terrible.

 

[Robor]

The banks should just give Obama administration the middle finger.

The Obama administration is out there every other day vilifying banks and their CEOs and now wants them to help him out.

The banks were bailed out by the taxpayers of this country. Were it not for those bailouts the banking industry would have collapsed upon itself. Now you think they have no obligation to help the taxpayers? Well, fuck you partisan tool.

 

[Hayabusa Rider]

Banks, nor businesses or consumers are "tapped to the max". Debt service ratios are still in the maintainable level.

AS far as wiping out all debt, that's the most moronic idea ever.

Then we never should have bailed out the financial industry. They could have borrowed.

So what happens? The taxpayer has to float money to these incompetents, which then turn around and quadruple interest rates on credit cards because of "adverse economic circumstances" or some such thing, who reward themselves with the money they wormed out of us.

The financial sector can go hang. Farm it out to Canada.

 

[Double Trouble]

The banks were bailed out by the taxpayers of this country. Were it not for those bailouts the banking industry would have collapsed upon itself. Now you think they have no obligation to help the taxpayers? Well, fuck you partisan tool.

Corporations don't have any "obligation" to help anyone. They are out to make money. Nothing more, nothing less. Believing that the banks think they owe the taxpayer anything is incredibly naive.

Also, banks did not get bailouts because the government wanted to help them, they got bailouts because the government feared even bigger problems if they failed. Again, it's a business decision, and to think that some big corporation leaders would be thinking "oh, I'm so thankful to GWB and Obama for bailing us out, we must reciprocate with acts of kindness and sacrifice!" is idiotic. They continue to make the decisions that they think will bring the largest profit.

 

[ebaycj]

Yes, because capital allocation controls the shift in population and society. Really, get a grip, societies undergo a natural progression of maturity. Unskilled to skilled to service/IP is the natural progression.

Mobilizing our society to become higher-level providers of services/IP is far better than "making things". Any mongoloid can run a stamp press. It takes a truly intelligent and trained person to program, create finished products, and develop/produce cutting edge healthcare technologies.

Problem with that is, we have a whole shitload of stupid people here in the USA. What are we going to do with them?

 

[ebaycj]

Anyways our fascination with a 1950s style manufacturing economy has to go. What is safer and less physically demanding? Working in a cube or running a stamp on a production line?

Perhaps what we need is more "physically demanding" jobs.. Our country was much thinner / healthier on average, when people didn't sit down all day at work.

 

[StageLeft]

Corporations don't have any "obligation" to help anyone. They are out to make money. Nothing more, nothing less. Believing that the banks think they owe the taxpayer anything is incredibly naive.

Also, banks did not get bailouts because the government wanted to help them, they got bailouts because the government feared even bigger problems if they failed. Again, it's a business decision, and to think that some big corporation leaders would be thinking "oh, I'm so thankful to GWB and Obama for bailing us out, we must reciprocate with acts of kindness and sacrifice!" is idiotic. They continue to make the decisions that they think will bring the largest profit.

This is why the money should have come with more strings.

 

[Siddhartha]

Yes, because capital allocation controls the shift in population and society. Really, get a grip, societies undergo a natural progression of maturity. Unskilled to skilled to service/IP is the natural progression.

Mobilizing our society to become higher-level providers of services/IP is far better than "making things". Any mongoloid can run a stamp press. It takes a truly intelligent and trained person to program, create finished products, and develop/produce cutting edge healthcare technologies.

Why is there a massive trade deficit with China? A healthy economy needs to produce its own food and manufactured goods.

 

[Double Trouble]

What I don't get is, a big part of what has gotten us to where we are now is the fact that people spend more than they make, they accumulate debt and are now in a tough spot with no easy ways to dig out of the hole.

Banks evaluate giving someone credit and do so based on the risk/return evaluation. Pushing banks to lend more than that is just pushing them to be irresponsible and loan money to people who won't be able to pay it back.

 

[Double Trouble]

This is why the money should have come with more strings.

No disagreement there. Either the money should have come with more significant strings, or it should not have been provided at all.