Fed partially nationalizes banks…..Wow…

[peterb]

Maybe this lasts four weeks and then back on the pain train to 7500. Typical effort of govt to appear helpful. We’ll be extrememly lucky if this is just a recession. But this is not the bottom. As it becomes more obvious to the market that this will be the worst xmas season in decades, they will sell once more. Next leg down being 7200 to 7500.

[patientlywaiting]

George Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.

http://www.pbs.org/moyers/journal/10102008/profile.html

BILL MOYERS:You would put it where?

GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.

You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.

BILL MOYERS:Of the bank?

GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.

[patientlywaiting]

George Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.

http://www.pbs.org/moyers/journal/10102008/profile.html

BILL MOYERS:You would put it where?

GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.

You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.

BILL MOYERS:Of the bank?

GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.

[patientlywaiting]

George Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.

http://www.pbs.org/moyers/journal/10102008/profile.html

BILL MOYERS:You would put it where?

GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.

You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.

BILL MOYERS:Of the bank?

GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.

[patientlywaiting]

George Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.

http://www.pbs.org/moyers/journal/10102008/profile.html

BILL MOYERS:You would put it where?

GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.

You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.

BILL MOYERS:Of the bank?

GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.

[patientlywaiting]

George Soros said that equity purchase in banks is a better way of rescuing the financial system. Buying the junk paper was a non-starter.

http://www.pbs.org/moyers/journal/10102008/profile.html

BILL MOYERS:You would put it where?

GEORGE SOROS:Into the capital of the bank so that the capital equity can sustain at least 12 times the amount of lending. So that’s an obvious thing. And every economist agrees with this.

You see, what is needed now the bank examiners know how those banks stand. And they can say how much capital they need. And they could then raise that capital from the private market. Or they could turn to this new organization and get the money from there. That would dilute the shareholders. It would hurt the shareholders.

BILL MOYERS:Of the bank?

GEORGE SOROS:Of the banks. Which I think Paulson wanted to avoid. He didn’t want to go there. But it has to be done. But then, the shareholders could be offered the right to provide the new capital. If they provide the new capital then there’s no dilution. And the rights could be traded. So if they don’t have the money, other people could, the private sector could put in the money. And if the private sector is not willing to do it then the government does it.

[larrylujack]

No surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.

[larrylujack]

No surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.

[larrylujack]

No surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.

[larrylujack]

No surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.

[larrylujack]

No surprises here, when all is said and done, there will be fewer banks in this country and hopefully the bank focus will be redirected to where it should be: providing capital to worthwhile projects and businesses as opposed to peddling creative financial instruments.
Hedge funds will be hit soon finalizing the RIP of the huckster neoliberal neocon con Laissez-faire era.

[kewp]

Buy the time this is all over, credit will be socialized.

[kewp]

Buy the time this is all over, credit will be socialized.

[kewp]

Buy the time this is all over, credit will be socialized.

[kewp]

Buy the time this is all over, credit will be socialized.

[Author]

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