How many more banks & large investment firms have to fail before we all realize this country is in serious trouble?

I don’t work for the Cato Institue but I do support their work and most of their positions. I’d be interested to hear where you think Cato has gone.

I certainly don’t think McCain, Obama, Congress, or a magic fairy will solve this “problem” That I can’t stress enough.

I do think the market is in major turmoil and people are losing money (at least on paper), but hey that happens it’s called a free market and without risk there would be no reward.

I’m generally not for “bailouts” but if it’s they are truly the pragmatic choice I can swallow it.

When the market is down like this it’s time to buy.

FDIC Can’t Afford Washington Mutual Failure

“Washington Mutual had $143bn in insured deposits on June 30 – about
three times the size of the deposit insurance fund, but less than half
of its $307bn assets.”

http://www.ft.com/cms/s/46b5513a-82bc-11dd-a019-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F46b5513a-82bc-11dd-a019-000077b07658.html%3Fnclick_check%3D1&_i_referer=&nclick_check=1

Cato has gone a looooooong way from what it once was. I won’t bore you with a history lesson…

I have to go to work anyway, thanks for the morning discussion. That’s the reason I subscribe to this blog

Krod

I personally think that we should take the pain now but I don’t think depositors should take it, businesses should be allowed to fail (as Lehman is) or acquired (like Merill Lynch). It’s funny because the limited government intervention is exactly what the Cato Institute advocates.

Also… I see you’re from CATO *gags*

Sorry but taxpayers should not have to take on any of the burden for a bank or businesses bad decisions. There should be no bail outs or rescues. The only way for this problem to be fixed is not by letting it be, it’s by allowing these institutions to fail and the market to correct it’s self.

I don’t know the future I do know, as an economist, the way things are headed. I was right 10 years ago and I am right today.

@CK

The Fed is willing to accept worthless paper and make loans from it. The problem ain’t liquidity; it is the problem of massive malinvestments that MUST be liquidated. We cannot have a recovery until that happens.

And I don’t see that happening… not with Helicopter Ben, not with the total incompetence of our government economists, and not with our FIAT Money system.

We are experiencing the most massive credit bubbles in financial history, the largest ever in absolute terms, exceeding that of 1929, bursting. There is no lender of last resort, not the Fed nor the U.S. government, large enough to hold asset prices up indefinitely. If they cannot support currencies when fundamental values change, then they surely cannot support a market as large as the stock market.

So continue living in your dream world that Obama or McCain is going to fix.

Nice logo Jimbo.

I’m not saying that we should all be altruistic and try to keep a bank in business but by rashly withdrawing your funds, contribute to the failure of the bank and an increased burden on taxpayers (which you are). Just let it be and things will hopefully right itself.

Do you know something we don’t about the future or are you just guessing?

Take your money out IMMEDIATELY if you have an suspicions that your bank is going under. If it’s 10 dollars to 100,000 dollars.

OH cry me a river about how taking your money out is the worst thing for the banks. %!#& Them!

We haven’t even seen the tip of the ice burg, we are headed towards an even greater depression and the FDIC will not be able to afford to insure all the banks it says it will. And if you say “That can’t happen”…. The Fed Resereve was created to stop a Great Depression from ever occuring again…and look what is happening.

So…. Your advice is BOGUS and WRONG. If you feel your bank will be closing soon, take your money and RUN!