NCAAbbs

We cannot allow financial services companies, such as AMEX and GMAC, to become bank holding companies simply to access the TARP. These actions not only make a further mockery of the banking system but they also bring in further systemic risk and banks we do not need.

The banking industry is going through a contraction through failures and acquisitions.

What a joke.

There were a lot of people out there, like myself, who knew that when the government put three quarters of a trillion dollars out there, many people would be at the trough feeding who weren't intended to get fed. You can't have that much money to be had and not have ever conceivable entity grabbing for it. I still feel like this was a bad idea that we are going to be paying for in the decades to come.

In other words, told ya so.

No, it wasn't a bad idea because it absolutely had to be done. Nobody notices right now but the banking system has stabilized considerably over the past month. There is no longer fear of failures of large banks because for the most part they have been weeded out. Consolidation will continue and when that settles we will see what banks do in terms of lending. Another hot button issue right now is regarding FAS 157. If that gets repealed or altered in a way that does not kill banks then it will really open up the credit markets.

The government does need to learn how to say no. The banking system is the core and engine of this economy. Letting companies become banks just to access TARP and then having auto makers with crappy business models beg for money will not help a thing.

I maintain it shouldn't have started.
FAS 157 created on paper losses, and the media has overhyped foreclosures (see below).
We were told these toxic mortgages were bundled with good loans, thus creating a 'financial crisis'.
This was the first shoe to drop. Everything else [in our economy] dutifully followed.
But, I don't see too many toxic mortgages with the forclosure rates below.

AP report
http://ap.google.com/article/ALeqM5iX9fL...QD94E0CH81
Foreclosure rates up 25 percent year-over-year
By ADRIAN SAINZ

MIAMI (AP) — The number of homeowners caught in the wave of foreclosures in October grew 25 percent nationally over the same month in 2007, data released Thursday showed.

More than 279,500 U.S. homes received at least one foreclosure-related notice in October, an increase of 5 percent over September, according to RealtyTrac Inc. One in every 452 housing units received a foreclosure filing, such as a default notice, auction sale notice or bank repossession.

HMMMMM, one out of 452 = .221% NATIONALLY
yeah, you read that correctly .221% is considered crisis level

In RealtyTrac's report, three states — Nevada, Arizona, Florida — had the nation's top foreclosure rates. Nevada posted the nation's highest rate for the 22nd consecutive month in October.

In Nevada, one in every 74 homes received a foreclosure filing last month. Arizona saw one in every 149 housing units receive a foreclosure filing, and in Florida it was one in every 157 homes.

NV 1.35%
AZ 0.67%
FL 0.64%

Among cities, Las Vegas had the highest October foreclosure rate among the 230 metro areas tracked in the report, with one in every 62 housing units receiving a foreclosure filing.

Las Vegas 1.61%

Mortgage/foreclosure crisis?
Does anyone here believe a <2% loss factor is a crisis?
If any other business knew they'd only have a <2% annual loss factor, they'd be
I know we would.
This is nothing more than corporate welfare, and a means to recover $$$ (on the backs of taxpayers) for poor business management decisions.
No company or individual is too big to fail. If there is a continued market for a product/service, a more stable company will fill the void.
If GM, Ford and/or Chrysler go under, the vehicle demand will be met by someone else.
Those automobile plants won't stay idle for long because the more stable mfrs. don't currently have the capacity to supply the demand.
They'll be purchased and re-tooled, or new plants will be constructed to a mfrs. specs.
The remaining mfrs. will need suppliers, too. Same as the big 3.
THERE WILL BE NO CATASTROPHIC LOSS OF AUTOMOBILE MANUFACTURING JOBS, only union mfr. jobs.
Thus, the reason for the big 3 sob story. If enacted, a big 3 bailout will be nothing more than a political payoff for the [union perceived]
deliverance of deciding votes sending obama to the White House.
Somehow, somewhere, someone's been hoodwinked.
The country, as a whole, has been duped/frightened into a contraction/recession by the media and these corporate goons.
Our current admistration/congress has facilitated the process.
I, for one, refuse to willingly participate.