We're throwing money at the problem, but did we do anything to fix it?

[scooterbug44]

Question - we keep spending billions - the latest is $250 billion to buy shares in banks, but have we done anything to fix the major root causes?

Nowhere in any discussion have I heard that we requiring banks to return to a certain debt ratio level (it was supposed to be 1:12, all of the ones that failed/had to be bailed got waivers and went as high as 1:40), change business practices, sell off these troublesome securities, change how they are bundled etc.

 

[idlewind]

Question - we keep spending billions - the latest is $250 billion to buy shares in banks, but have we done anything to fix the major root causes?

Nowhere in any discussion have I heard that we requiring banks to return to a certain debt ratio level (it was supposed to be 1:12, all of the ones that failed/had to be bailed got waivers and went as high as 1:40), change business practices, sell off these troublesome securities, change how they are bundled etc.

You are so right my friend. We are sinking billions into a sinkhole.

 

[mossyhead]

Something we can all agree on

Quote of the Week
'I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.'
Thomas Jefferson 1802

 

[idlewind]

Thomas Jefferson the prophet......who would have thought it.

 

[30ashopper]

Question - we keep spending billions - the latest is $250 billion to buy shares in banks, but have we done anything to fix the major root causes?

Nowhere in any discussion have I heard that we requiring banks to return to a certain debt ratio level (it was supposed to be 1:12, all of the ones that failed/had to be bailed got waivers and went as high as 1:40), change business practices, sell off these troublesome securities, change how they are bundled etc.

That happened automatically when they converted over to conventional banks.

CNBC has been talking to treasury people about overall changes, the whole system needs an overhaul but nobody's touching it at this point since nobody knows whos going to be running things next year.

 

[Miss Critter]

Not only are ratios not mandated, but from what I heard on NPR today there are NO restrictions. Can't remember the interviewee's name, but he said there's nothing in the deal that prohibits banks from doing anything with the funds, including simply passing them through to investors as dividends. No that that would ever happen, of course.