Who can sleep with all that’s going on in the world? I just might pull an all-nighter and catch up on my reading and research.
Hey Geithner, wanna solve the problem?!
Shut down the insolvent banks!! Isn’t that what you’re supposed to be doing? No matter how big. No matter how small. No matter how near, no matter how far.
Nothing is too big to fail. Nothing, nada, zero, zip.
A bank fails because it sucks. It sucks because it blows. It blows because…….well, you get the picture.
See, the problem is that a “certain” large number of banks are carrying certain “troubled” assets on their books at certain “egregiously” inflated prices. Disposing of these certain “problem” assets at market value or “marked-to-market”, would expose these worthless pieces of dung for what they are: “worthless” pieces of….. (fill in your preferred form of feces). “Certainly”. Indeud.
If a “bad bank” gets created (with the help of private equity) the losses and write-downs that the stupid banks would have to take upon sale to Timmy Geithner & Co. (aka “bad bank”) would basically cannibalize the capital structure of any stupid banks who sell these worthless pieces of air to our blessed government (we the taxpayers). Multiply this by a factor of 1,000, and Houston, we have a problem. In many cases, the losses would far exceed the market cap of these banks of ill repute.
Plus, how do you value the “shit”? If you pay fair market value (= $0.001) for the worthless, stinking stuff, that is one thing, but what happens if, in all your gay kindness to the banks, you pay more than fair value? How is that fair to us, the gun-toting, mace-wielding, rabble-rousing, viking electorate?
People, these Washington bigwigs need to man up and start shutting down banks right and left, like bowling pins. Close down the insolvent banks. Give the CEOs a permanent vacation. Key their cars. Be creative. Write your congressman. Better yet, park in front of his house and stare menacingly at his wife and family.
My point is, once the bad banks are seized, the deposits get sold along with any “good” assets (can’t imagine what that might be), and the bad assets get transferred over to “Son of RTC, circa 2009”. This RTC Jr. approach will then allow for the liquidation of the bad, bad stuff (cough, cough). Why reinvent the wheel? I know these new government asshats are all about “change”, but come on. Do you really have to sit there twiddling your thumbs and racking your pea-brains to come up with a “new” solution? I know, you gotta be original. Well, while you’re sittin’ there trying to figure it all out….
………let’s get this Depression started!
(Disclaimer: liberal youse [sic] of quotation marks was unintended, and purely coincidental)
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