Wednesday Stories: Bank Bailout Redux; Geithner Hearings & Big Blue

At a time when the country needs to be able to trust our leaders we need someone more trustworthy than Timothy F. Geithner to be Secretary of the Treasury.

9.The last thing we need in US Government, as elected officials, are Lawyers! They are trained in the art of deception and straight answers cannot be found in them.

The banking problem is not going away : The Senate and House of Representatives Banking Committee (S&HORBC) actually caused most of this "perfect storm" ruining our financial system. 1.Bad goal “housing for the poor” and “affordable Housing for everyone” goals voiced by Administrations from Carter thru W. Bush 2.Sen. Dodds’ and Rep Barney Franks’ S&HORBC forced mortgage loans on Banking executives intimidating them into make bad loans via Fanny Mae & Freddie Mac (FM&FM) with threat of major actions against the banks if they did not feed these “BAD ASSETTS” to FM&FM. 3.US Governments equity (toxic) in Fanny Mae & Freddie Mac grew too big so that US Government FUTURE SPENDING PROGRAMS were jeopardized, so SBC & HORBC called on banks to buy the mortgages back 4.Bad FM&FM mortgages resulted below legal required Reserves. 5.failure of SBC & HORBC to deal with financial systems security 6.The Senate and Hof R failed to deal with a energy policy leading to shortages. 7. New home owners, barely affording homes when gas prices were at $2.25 range, were confronted with the choice of quitting their job or commuting with loan default. Quit eating or let the house go? 8. The “Potential” of Global Warming (GM) & environmental groups scared all in government “into-the-box” of retarded thought that “we have no choice”. Rep and Sentorsfailed to see causal effect of misguided government spending. “Follow the money” to understand what happened. No grant money was allocated to refute GM

The upside for the tax payers in the bailout is big "Zero". Big banks are not going to survive as there assets have at least 30% lower value. The equity cannot support and it has already been gone. The bailout money for the big banks cannot help as it is sinking money in sea with one bucket at a time. The realization that by throwing tax payers money at weak banks will not solve the issue. Let the Darwin theory work. Survival of the fittest. The upside for the tax payers in the bailout is big "Zero" Small banks are in best situation to handle the crisis, as they always give loans on based on relationship. The closer the lender is to the borrower the better the system will work. Let the small banks grow. Big banks are important for the economy, so they should be made public and nationalized.