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Thoughts on Bailouts...

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January 21, 2009 – Comments (3)

I was just reading Mish on the British Pound.  I predicted long time ago was probably one of the worst currencies to be in. That was an easy call just based on my observations from living there on out of control social spending.

I have mentioned this before, but I do wonder where the money would come from for those of us with deposits if there weren't bailouts.  They squandered deposits, gave it to people who can't repay it.  They talk about getting lending going, but I think it is more about making so you can still access your money.

3 Comments – Post Your Own

#1) On January 21, 2009 at 9:37 PM, rebelcow (< 20) wrote:

Britain should have instead recommended to its banks to short their own stock.

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#2) On January 21, 2009 at 11:06 PM, MikeMark (29.62) wrote:

Interesting. I've come to the same conclusion. However, in my opinion, that's still the wrong way to make sure the deposits are covered. That's what FDIC and other's like it are supposed to handle. Instead of rewarding the execs and shareholders of bad banks, they should be allowed to go bankrupt. The deposits of the people should be protected by the FDIC.

That would strengthen the savings of the people, therby strengthening the economy and probably the money too.

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#3) On January 22, 2009 at 10:49 PM, edbbear (< 20) wrote:

In the States I think money for FDIC insured deposits will end up coming straight from the Treasury.  I wonder if they shouldn't be setting aside a big chunk of the second $350 billion in TARP just to cover the upcoming losses to the FDIC fund. 

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