Politics
Out of context: Reply #3583
- Started
- Last post
- 33,773 Responses
- TheBlueOne0
Why the Bailout was a fake out.
"In point of fact, the dirty little secret of the banking industry is that it has no intention of using the money to make new loans. But this executive was the first insider who’s been indiscreet enough to say it within earshot of a journalist.
(He didn’t mean to, of course, but I obtained the call-in number and listened to a recording.)
“Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. “What we do think it will help us do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop.”
Read that answer as many times as you want — you are not going to find a single word in there about making loans to help the American economy. On the contrary: at another point in the conference call, the same executive (who I’m not naming because he didn’t know I would be listening in) explained that “loan dollars are down significantly.” He added, “We would think that loan volume will continue to go down as we continue to tighten credit to fully reflect the high cost of pricing on the loan side.” In other words JPMorgan has no intention of turning on the lending spigot."
http://www.nytimes.com/2008/10/2…
The rich will now get richer. And power will be that much more consolidated.
- BAM! http://money.cnn.com… eat that other banks. PNC has a good plan********
- Exactly.TheBlueOne
- They didn't buy sh*t mortgages. Not in the same dumbf*ck ballpark as those others.********
- Don't blame PNC for scooping up National City. I don't like the bailout either.********
- http://money.cnn.com… sittin' f*cking pretty my stocks are with them.********
- We've been sold down the river.tommyo
- Bailout never made any sense to me either... business will do what's good for business, not helping people on the streetSigDesign
- < Exactly. The gov just gave shitty businesses with shitty business practices the resources to keep being shitty.tommyo
- it's a clusterf*ck that the government cannot seem to control.********
- BAM! http://money.cnn.com… eat that other banks. PNC has a good plan