Let Banks Fail So John McCain Can Win Something
John McCain, a guy who knows a thing or two about failure, has taken an official stand on federal bailouts of the nation's financial system. (Finally!)
Over the weekend he told the Obama administration to step up to the maverick plate and let the nation's biggest banks fail…
"I don't think they've made the tough decisions. Some of these banks have to fail," McCain said on "Fox News Sunday."
Sure, because the financial system is in chaos. A bank failure would be catastrophic, but at this point the smart thing to do is to get out and let the banks' executives clean up the mess on their own. Why should taxpayers keep paying for mistakes they didn't make?
John McCain has always been clear on this principle…
"With less than three months to go before the election, a lot of people are still trying to square Sen. Obama's varying positions on the surge in Iraq. First, he opposed the surge and confidently predicted that it would fail. Then he tried to prevent funding for the troops who carried out the surge," McCain said.
"Not content to merely predict failure in Iraq, my opponent tried to legislate failure."
The difference, of course, is that the United States financial system exists mostly to drive profits and prestige to a small number of powerful, well-connected people.
Whereas the war in Iraq exists for completely different reasons.
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Why don't you get a real job (as in something other than liberal blogging.) Pay some taxes before you open your trap about the debate over how it's spent.
The Reid-Crapo bill was introduced to allow FDIC to borrow up to $500 billion from the gobvernment just in case a bank the size of Citigroup or Bank of America should fail.
There’s a company called PennyMac, which perhaps ironically was formed by disgraced former Lending Tree executives. They are buying up defaulted mortgages from banks. They then work with the home owner to either reduce the interest rates or lower the loan balance to a point where the home owners can afford the loans. And PennyMac is turning a profit.
This is exactly what TARP was supposed to do and yet hasn’t spent a dime doing.
I can see how letting banks fail will boost confidence in the banking system. Sure it will cost the tax payers billions because FDIC has never been funded to the levels required to insure banks the size of Citigroup and Bank of America. Besides, I'm sure a bunch of small local banks will be able to carry the debt burden that these megacorporations went bankrupt with.
Good plan John. I can see your understanding of the economy has improved over the last 12 months since you declared, "I don't understand the economy."