Banks Start Promising Kashkari They Will Make Loans

More importantly, the WSJ gets at the real problem here. In addition to running on fumes and fearing for their own futures, the banks aren't lending because:

* Some potential customers are in terrible shape (and banks just learned the hard way that lending money to customers who can't pay it back isn't a stupendous idea)
* Other potential customers are cutting back and don't want the money.
* Would-be depositors are hiding their money in Treasuries.

What's really going on here? Our economy is collectively coming to the consensus that a 350% debt-to-GDP ratio (vs. 155% average) is too high. Shoveling money at the banks won't fix that. The only thing that will fix that is vaporizing $10-$20 trillion of debt.

Read the full story here

-OR-

::Big Banker Writes Anonymously: Government Needs To Stop Helping Big Banks
::AIG's Bailout Total Rises To $144 Billion

Comments

[radnip]

If you take public money that is NOT a loan, you need to pledge that no executive gets paid more than a public school teacher (who is NOT asking for billions in bailout). Paid includes salary, perks and stocks options!

Okay, fine, I might be argued into agreeing that fat cat wall streeters are worth 10 school teachers, because they contribute so much more to our society than those educating the next generation.

[Veri]

Now they start promising to make loans? I wonder which closely connected Financial Street gurus will get the juicy deals? Oh, sure. There will be a few pennies for Main Street.

If you could not see this coming, get your head out of the sand. This plan was proposed by Bush, a Republican, and passed with the help of The Democrats. Now, where are the differences? Despite better plans being put forward, you and your children's children are now stuck with, ahem, a $2.8 trillion dollar tab and rising.

To answer the question about differences between the two parties. Social differences only.

[gorgonzola2]

Will Senator John S. McCain claim credit for allowing banks to invest the taxpayer money however the hell they want, in line with hisw free enterprise theories. Please take a bow, senator.

[DirkNLExpat]

China And Russia Hint At Dropping US Dollar
Vladimir Putin joins scores of other heads of state in calling for complete overhaul of global financial system

Friday, Oct 31, 2008

StumbleUpon

Reports from the Russian media suggest that the country is on the verge of an agreement with China to renounce the US dollar and stop using it in international settlements.

"The recent meeting between Russian Prime Minister Vladimir Putin and his Chinese counterpart, Wen Jiabao, created a financial sensation," reports RIA Novosti.

"Wen said that the two nations could withstand the global financial crisis if they joined forces; Putin urged him to go farther and stop using U.S. dollars in Russian-Chinese settlements."

Russia Today reports that Putin has also called for a complete overhaul of the world"s financial system to "end monopoly in world finance".

The move comes as the dollar is rebounding and gaining strength for the first time in months, leading some to suspect the move is part of a wider political agenda.

Igor Nikolayev, chief strategic analyst at FBK private auditing firm told RIA Novosti "I think it was a political statement rather than an economic decision. There is a dominant public sentiment that the United States is the source of all evil, so let's stop using the dollar,".

[falco]

No, it isn't our money. It's their money, but our responsibility. Private profit, public losses. We have nationalized the banks losses and the profits continue to be private. They can continue to skim off the top for themselves and then take the remainder and gamble! They need to be behind bars. I have full confidence it will happen. We just need a tipping point. Like when social security checks don't arrive. Or veteran hospitals close. Or when it's obvious that we have become socialist while the banksters, most Congressmen and Senators, and the rest of the elite continue being vulture capitalists and reap untold wealth.

[Ron1951]

Meanwhile, despite their losses, the banks will pay out millions in bonuses again this year.

Must be nice to get a bonus for non-performance!

[gorgonzola2]

do u tink, maybe, that senatore mccaine get a little bonus under de tabel, eh?

[radnip]

Must be nice to get paid for being FIRED!

[aaronsanders]

This is why we need someone who has a better economic plan for our country.

http://www.votesmarter2008.com

[magen]

HAHAHAHAHAHA

A Bushco economic appointee named Kashkari.

How appropriate!!!!

[canuck eh]

WRT Kashkari - his youth need not be a strike against him.
If he is brilliant and energic and is capably directed by wise leadership he could do an excellent good job.
(Though hIs ironic homophone of a surname will certainly be useful if he screws up, LOL!)

Many international financial heavyweights have said that they don't know for sure whether the measures taken so far will work or are enough. I seem to recall one expert (sorry don't recall who) who said that trying a variety of measures until something works was a likely scenario because, with the complexity of these credit derivatives, everyone is in unknown financial territory.

I'm on the fence as to whether the banks are doing what they are supposed to or not but I believe that the scrutiny and the resulting heated discussions are necessary and valuable.

Unfortunately, I don't think that there are easy answers that can prevent economic suffering before this is over. But I hope that ways will be found to limit the worst of potential effects.

[davidwayneosedach]

When? When? And, When? It is not their money they are holding on to. They didn't earn a cent. Every day they dither around (or go on AIG style junkets) costs the taxpayer money.

[MovingtoNorway]

Calm down. First they have to set aside enough for their multimillion dollar bonuses. You don't understand high finance.

[peterg76]

Why would banks lend money for interest - you know, their job - when stealing money is working so well for them?

[iambusto]

why would banks lend out money to deadbeats who right now want the govt to decrease their mortgage balance just because they are underwater in their loans.

[Big0725]

Screw those swinging dicks at the bank. If I was in charge, I would have told them the day they got the transfer from th government "you have a week to get this money moving. If it doesn't move, we go back to Congress and I recommend to nationalize your bank, put it in a conservatorship, and throw your a$ses out on the street." And if they sue, I'll do my best to tie there assets up for as long as possible. You might be able to sniff your money by the time Barack's first term is winding down.

[dandypuddin]

But the banks and mortgage brokers aren't deadbeats? You're right, they're crooks. They had no problem lending money before, pocketing the profit and then selling the loans around the world. But that's ok, that's capitalism. God forbid you'd want to try to keep families in homes if at all possible. You'd rather give our money to the crooks on Wall St. I have a feeling your portfolio has lost a bit of value...you can always tell when you repubs get cranky.

[DMcD]

I don't know that what we need here , is an administrator by the name of: "Cash and Carry" (Kashkari)

[iambusto]

thats an indian american name. your ignorance is showing.

[DMcD]

Yes; you are: "bust"ed --- guess we all know who you work for , Dufuss.

I can just see it now , Bush has a list of potential saviours and hears the name Kashkari -- he says: "sounds good to me", hire him.

[praxitas]

@iambusto
its called joke, and as these go its not the worst ive heard.

[Big0725]

Jesus Christ! I can help un-wedge that stick from your butt!

Also, you may want to peruse the link below.

http://grammar.ccc.commnet.edu/grammar/

[sparkey]

Bank promises are like politician promises. Both are not to be believed. They both will break that promise at the earliest opportunity.

[Venom5809]

I cannot believe that this bailout was approved and there have been no arrests.
This is a joke.

[jacklambert]

http://www.guardian.co.uk/commentisfree/2008/oct/31/useconomy-banking

[who38]

Promises, promises. Another weekend for bankers to decide how much to skim for the CEOs. I am so glad we averted this "monetary crisis".

[DMcD]

.... a "weekend" spent on a Bahama's retreat no doubt.