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I like this bailout better...

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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 03:17 PM
Original message
I like this bailout better...
Meanwhile, Charles Calomiris of Columbia University and Douglas Elmendorf of the Brookings Institution have offered versions of another idea. The government should help not by buying banks' bad loans but by buying equity stakes in the banks themselves. Whereas it's horribly complicated to value bad loans, banks have share prices you can look up in seconds, so government could inject capital into banks quickly and at a fair level. The share prices of banks that recovered would rise, compensating taxpayers for losses on their stakes in the banks that eventually went under.

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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 03:33 PM
Response to Original message
1. And if we did this, we the taxpayer could vote our shares
and influence the company as owners.

We could vote in directors who can refocus these firms attention towards serving the country's needs while making a profit.
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YellowRubberDuckie Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 04:11 PM
Response to Reply #1
2. That's funny.
We do not have any power in this government anymore.
Duckie
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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 04:13 PM
Response to Reply #2
3. We will when Obama wins :)
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YellowRubberDuckie Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 04:20 PM
Response to Reply #3
4. If they don't steal the election again.
At this point, do you really think they won't?
Duckie
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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 04:30 PM
Response to Reply #4
5. Actually I don't think they will get away with it this time.
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YellowRubberDuckie Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 06:54 PM
Response to Reply #5
8. Because Diebold is just so forthcoming with their lies.
I'm sorry to be Debbie Downer, but come on. Be realistic.
Duckie
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nichomachus Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 04:45 PM
Response to Original message
6. Why not just give homeowners
enough money to pay off their mortgages. Then, the people will have houses and the banks will get the cash they need.

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MrMickeysMom Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 05:09 PM
Response to Reply #6
7. Best suggestion yet...
Anyone want to do the math on this one?
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dkf Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-21-08 07:53 PM
Response to Reply #6
9. Pay for the entire house you mean?
How do I get into that lottery? Talk about get out of jail free.
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