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kraft-t
Senior Advisor

Did anyone watch "Too Big to Fail?"

I watched it first during a raging storm and dish network kept losing signal or my receiver did. I watched it too more times and fell to sleep twice and finally saw the complete show last night.

 

What is evident was how close we were to a complete financial collapse. Had we not done tarp we would have had a complete lockup of our financial system. Banks imploding with depositors making a run on the banks. Nobody lending and the most  successful businesses unable to secure operating capital. Citibank was rumored to deny op capital to McDonalds.

 

Ironically, we end up with the ten largest banks controlling a large percenatge of deposits and they are all too big to fail.

 

If the justice department does not pursue the crooks in the banking fiaso or does not strengthen regulations we are doomed for a repeat even worse than this one.   Comments?

21 Replies
dagwud
Senior Contributor

Re: Did anyone watch "Too Big to Fail?"

I have taped it but have been to busy to watch it yet.

 

 

At least we have had one banker tried and convicted so there is hope the Justice Dept will go after more of these crooks however I'm betting all the really big fish will go untouched.  Maybe if Obama would order the Justice Dept. to stop the witch hunt of NSA whistle blower Thomas Drake they could spend more time going after the real criminals.

bruce MN
Advisor

Re: Did anyone watch "Too Big to Fail?"

I'd throw in the Jeffrey Manning  witch hunt along with Drake.

Samnospam
Advisor

Re: Did anyone watch "Too Big to Fail?"

There were proposals to accomplish what tarp did while not rewarding the powerful that caused the problem. But of course rewarding the powerful was the point. No bailout would have resulted in what has happened many times in history a brief period of distress followed by recovery. All we've succeeded in doing is moving the losses to the tax payer. Look into what's happened in ireland, our future is there.
bruce MN
Advisor

Proposals?

There were proposals almost 20 years ago to regulate deriviatives. There have been proposals for decades to manage the Mississippi watershed differently than the Corp has.  There were proposals in 1930 to do what you suggest had been done this go round...and they were followed. And it only took 15 years and a big war to snap out of it.

Samnospam
Advisor

Re: Proposals?

Complete bull**bleep**
kraft-t
Senior Advisor

Re: Did anyone watch "Too Big to Fail?"

Don't you think a run on the banks would have seized up all lending? Plus millions of savers scrambling to get their savings out of all banks not just troubled ones/ A collapse of the f inancial system which would have brought most business to a stop.

 

I cannot see any alternative that would have prevented that.

bruce MN
Advisor

Re: Proposals?

Market crashed in '29. Hardly any New deal implementation took place until after the mid term elections of 1930 if any. Under a GOP President,  It was Hoover 's baby for quite a while and then not much at all until after '32.

 

You Great Depression deniers and deconstructionists never seem to mention, as you blame FDR for everything wrong then and today, that the shiite hit the fan over 3 full years before he took office. What was done, particularly for the fist full year was ALL decided upon by the banks and the big time captitlaists. As it was with the proposal and develpment of TARP........ rather, THEY TRIED WHAT YOU THINK SHOULD HAVE BEEN TRIED IN 2008. Tighter money not allowed to stray much off of gold and silver... and credit only to people who didn't need it. Strong currency. Tariffs. Sell off or giveaway of large bundles of Federal property. Easy bankruptcy for plutocrats..... and county farms and asylums for broke, and broken, little people.

 

FDR didn't get elected because he could talk out of the side of his mouth like some Texas cracker. even though he too had been born in the North East and had attended an Ivy league school. Or because he had a cool swagger and played basketball, or because he could play the saxaphone on some colored guy's media progam. He was elected because the people had a pretty damned good idea of what had just happened, and who was responsible.

 

The wankers and hosers are alot more sophisticated now. I grew up hearing over an over again that we can't have another depression like that becasue "they " know what to do now based on  what "they" learned from the last one.

 

Well, I guess they did. "They" are getting the least affected to turn virally towards the "theys" who are most.

 

 

dagwud
Senior Contributor

Re: Did anyone watch "Too Big to Fail?"

"I'd throw in the Jeffrey Manning  witch hunt along with Drake."

 

 

 

Can you give me a link on that Bruce as I'm not familular with the Manning story and a Google search came up with many various unrelated stories?

 

 

 

Don, I agree they needed to do something to avoid a run on the banks but there should have been been oversite and strict rules involved to make sure the money was used to keep credit flowing as opposed to using it to give out healthy bonuses to bank officials.

schnurrbart
Veteran Advisor

Re: Did anyone watch "Too Big to Fail?"

I'm somewhat conflicted over the Espionage Act and the Whistleblower Act.  When you are legally bound to NOT disclose classified material but yet seemingly protected by the Whistleblower Act, there is a conflict.  Not sure what could be done to rectify this conflict.  I am totally against the casual release of classified material which happens all the time through those "not authorized so let's keep the name out of it when we tell the world all about it" deals.  I haven't read the whistleblower act so don't know how it relates to National security but apparently it protects those who disclose national secrets if they think it is a waste of money.