Bailout News: Gasparino Says 'Bad Bank Plan Hits Snag'
Without comment on his reliability, I present the following CNBC Video from Charles Gasparino. We all know his track record with breaking stories. Take a rip inside and see the CNBC Video. If true it is outstanding news.
Here is the Video from CNBC.
Plus we have some analysis from Carney at Clusterstock inside.
Same problem as always: how much do we taxpayers bid for these assets. And if we bid too little then the whole plan never happens. Good.
I will offer my solution again:
Sieze the banks. Put them into government receivership. Then look at the assets honestly for the first time. Write them down dramatically. All of them. Force the BONHOLDERS to take the hit(not the taxpayers). Wipe theses bondholders out.
Then re-capitalize with taxpayer dollars. We will invest only after the existing BONDHOLDERS have been wiped out.
Read this piece by fund Manager Whitney Tilson for a much longer version of my summary above.
Also see this piece by University of Chicago professor Luigi Zingales for a slight variation of my plan. Including another alternative.
Fianlly, see this summary of Dr. Zingales piece here by Blodget at Clusterstock.
Jan 30, 2009 at 8:26 PM
Reader Comments (4)
concerned american taxpayers.
people that are fed up with all these stupid bailouts. Enough is enough! This is a great site and I hope this site can make a difference voicing our opinion on all this nonsense. Go DailyBail!!
1. Congress and Senate should immediately require FDIC to take all U.S. Banks into receivership, move all asset classes onto their balance sheets, and force them into Chapter 7 or Chapter 11 bankruptcy, whichever is more appropriate.
2. Congress and Senate should immediately pass legislation making Treasuries and select precious metals legal tender.
3. Congress and Senate should immediately charter Congressional Banks in every State and major city under U.S. jurisdiction and capitalize these Congressional Banks with Treasuries and select precious metals from the United States Bullion Depository directly.
4. Congress and Senate should immediately direct the United States Mint to make Treasuries and select precious metals of equal denomination as Federal Reserve Notes and coinage currently in circulation.
5. Congress and Senate should immediately repeal the abomination better know as the Federal Reserve Act, abolish the Federal Reserve System and FOMC and place all current Federal Reserve powers under U.S. Department of the Treasury. Additionally, Congress and Senate should immediately pass legislation setting a date for the removal of legal tender status for Federal Reserve Notes.
6. President Obama should immediately submit and Congress and Senate should immediately pass a Budget of the United States Government.
Game. Set. Match.