Comments on: It’s A Grizzly Market http://www.fitsnews.com/2009/03/10/its-a-grizzly-market/ Politics, Sports and Pop Culture Tue, 14 Feb 2012 16:37:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Brandon http://www.fitsnews.com/2009/03/10/its-a-grizzly-market/#comment-49088 Brandon Tue, 10 Mar 2009 20:13:30 +0000 http://www.fitsnews.com/?p=15893#comment-49088 The new buzz is "Vulture Market". The new buzz is “Vulture Market”.

]]> By: Pat Hendrix http://www.fitsnews.com/2009/03/10/its-a-grizzly-market/#comment-49048 Pat Hendrix Tue, 10 Mar 2009 13:21:34 +0000 http://www.fitsnews.com/?p=15893#comment-49048 No, this isn't the bottom. We have a ways to go before we sort out the fraud and "off balance sheet" accounting that brought us to this meltdown. I'm not sure anyone knows what to do. Sure, it's easy to carp on the sidelines, but the possibility of systemic failure throughout the entire industry is real and scary. But what adminstration wants with the utter nightmare of nationalizing these banks? Seems to me they are simply keeping the system afloat until they can get their minds around the problem. But the costs to unveiling a crappy, potentially counterproductive plan are significantly higher than the costs of taking another month or two to get it "right" - whatever they may be. However, ultimately it seems clear that the losses in the banking industry cannot be made to go away. Hence, the system needs to be purged of them. The investors in financial firms need to be forced to take their medicine, not keep trying to avoid them. Seems to me that we need to remove the insurance subsidiaries from institutions like AIG, giving an equitable price - perhaps made easier by canceling the debt that they already owe the American taxpayer - and then let them sink, allowing the rest of the losses to find their way to the owners. After it crashes and burns, we can clean up system and bring regulatory reform to the industry. Appears to be the most effcient means to get it over with. But make no mistake, this country will see unprecedented pain as it sorts this mess out. Then again, I'm a history major. Maybe there is a better way - I hope so because the alternative is scary stuff. No, this isn’t the bottom. We have a ways to go before we sort out the fraud and “off balance sheet” accounting that brought us to this meltdown. I’m not sure anyone knows what to do. Sure, it’s easy to carp on the sidelines, but the possibility of systemic failure throughout the entire industry is real and scary. But what adminstration wants with the utter nightmare of nationalizing these banks? Seems to me they are simply keeping the system afloat until they can get their minds around the problem. But the costs to unveiling a crappy, potentially counterproductive plan are significantly higher than the costs of taking another month or two to get it “right” – whatever they may be. However, ultimately it seems clear that the losses in the banking industry cannot be made to go away. Hence, the system needs to be purged of them. The investors in financial firms need to be forced to take their medicine, not keep trying to avoid them. Seems to me that we need to remove the insurance subsidiaries from institutions like AIG, giving an equitable price – perhaps made easier by canceling the debt that they already owe the American taxpayer – and then let them sink, allowing the rest of the losses to find their way to the owners. After it crashes and burns, we can clean up system and bring regulatory reform to the industry. Appears to be the most effcient means to get it over with. But make no mistake, this country will see unprecedented pain as it sorts this mess out.

Then again, I’m a history major. Maybe there is a better way – I hope so because the alternative is scary stuff.

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