[clue-talk] Fwd: [clue-tech] Was: ... Giveaway

[Nate Duehr]

Angelo Bertolli wrote:

> But regulation is key.  You and I aren't allowed to borrow from the Fed 
> unless we're bank.  So for that privilege they should be under some 
> rules that will help prevent this from happening again.

Optimism is more key than regulation, but yes... both are needed.

If I could get a guaranteed 10% on my investments like Warren Buffet, 
I'd be there in a heartbeat, and I think there's PLENTY of folks who 
would.  I don't have 5 billion in cash lying around, so I don't think 
I'll be able to broker any deals like that.  (GRIN)

If they REALLY wanted to capitalize the banks, they should have made it 
a JOINT venture between the government and individuals with money to 
invest.  Fed dumps money into a bank, and allows anyone else to also buy 
into their loan at the same rate, with the Fed backing it.

Is it's a strange mix of socialism and capitalism?  Sure.  But if I had 
a guarantee that the investment would REALLY be back-stopped by the 
government (and not in some screwed up quasi-government but traded on 
the stock market company like Fannie and Freddie) I'd be throwing money 
at banks.

If I could also CHOOSE which bank and at which interest rate -- good 
bank, lower rate, riskier bank, higher rate -- that'd be cool too.  I'd 
invest.  There are six or so banks that are not going anywhere, but 
still took government money... the government WILL get paid back on 
those loans, and I'm SURE the interest made will come back to the 
taxpayer, right?  Sure.  Right.

> As for the "poor small banks" you really mean the poor smaller banks 
> that are still in the group of the big guys.  Reports show local banks 
> (the real small guys) are doing fine, since they've had to be lean and 
> mean to begin with and didn't risk participating in such practices.

Very true.  The sector gets pummeled, just like everything else trades 
on Wall Street, and always has... but there are some small to mid-sized 
banks that had little exposure to this screw up, who will come out fine.

Nate