What's with this financial buddy bailout. Let's charter NEW banks!
Is there any reason whatsoever that we could not have taken all the prodigious financial bailout money which is roughly a trillion US dollars and used all the funds to capitalize newly incorporated/chartered banks. Under traditional sound bank leverage ratios this would have offered us TEN TRILLION dollars in immediately available loan cash to goose the credit markets into something approaching normalcy.
Why not let the 60 trillion dollars in credit default swap chain letters (an amount more than the GDP of the planet) go straight to h$ll, and permit the overpaid and malignantly short-sighted hyenas on the executive floors of wall street to go with them.
There could be a nifty fire sale and the new national banks could scoop up office space for a song, with computers and cables and modems and headsets and screens all in place and ready to go.
Mind you we might impose a few new regulations on our new banks. No more borrowing MIT and CalTech physicists to alchemize new debt instruments with incomprehensible risk formulas; no more tranching Visa Cards and selling Joe main street's revolving debt to Singapore; and, let's reinstate the cram down for residential properties that was always part of the bankruptcy code until the credit card issuers paid for it's excision.
The damage done by the Wall Street/ London debt casino is literally staggering. We do not need the same old people to repair it. While the horse is out of the barn where traditional real estate and consumer lending are concerned (no more face to face long term relationships) we can at least rip up the crazy chain letter. No more slicing and dicing mortgages made in Altoona to investors in Macao and Pacific Island tax havens;
Why can't we have some new banks with clean and transparent balance sheets, making loans and playing by basic rules of safety and soundness.
Why not let the 60 trillion dollars in credit default swap chain letters (an amount more than the GDP of the planet) go straight to h$ll, and permit the overpaid and malignantly short-sighted hyenas on the executive floors of wall street to go with them.
There could be a nifty fire sale and the new national banks could scoop up office space for a song, with computers and cables and modems and headsets and screens all in place and ready to go.
Mind you we might impose a few new regulations on our new banks. No more borrowing MIT and CalTech physicists to alchemize new debt instruments with incomprehensible risk formulas; no more tranching Visa Cards and selling Joe main street's revolving debt to Singapore; and, let's reinstate the cram down for residential properties that was always part of the bankruptcy code until the credit card issuers paid for it's excision.
The damage done by the Wall Street/ London debt casino is literally staggering. We do not need the same old people to repair it. While the horse is out of the barn where traditional real estate and consumer lending are concerned (no more face to face long term relationships) we can at least rip up the crazy chain letter. No more slicing and dicing mortgages made in Altoona to investors in Macao and Pacific Island tax havens;
Why can't we have some new banks with clean and transparent balance sheets, making loans and playing by basic rules of safety and soundness.
