1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Chomsky was right, Geithner bails out everybody

Discussion in 'BBS Hangout: Debate & Discussion' started by rhadamanthus, Jan 11, 2010.

  1. Billy Bob

    Billy Bob Member

    Joined:
    Nov 1, 2009
    Messages:
    591
    Likes Received:
    21
    Eventually, it'll end up in a bank because someone in a real world situation won't be in debt. But your observation brings up another block in the system; interest. It's unlikely debtors won't charge interest using money that's not theirs.

    The reserve requirement is somewhere around 2%, I'm not sure, but that's actually enough. A raise of or the r.r. even a fraction of a percent has a large effect in the economy.
     
  2. Billy Bob

    Billy Bob Member

    Joined:
    Nov 1, 2009
    Messages:
    591
    Likes Received:
    21
    :p I guess you're using this story as sarcastically allegory.
     
  3. glynch

    glynch Contributing Member

    Joined:
    Dec 1, 2000
    Messages:
    17,786
    Likes Received:
    3,394
    I like this idea. However, a friends kid who is in investing banking with Morgan Stanley says the big banks will wind up with all the money anyway.

    I'm still thinking about doing it. Will it be a hassle with credit cards and debit cards and ATM's and all the rest?
     
  4. FranchiseBlade

    FranchiseBlade Contributing Member
    Supporting Member

    Joined:
    Jan 14, 2002
    Messages:
    48,833
    Likes Received:
    17,453
    I'm in a credit union, and I have the debit card which also acts as a credit card. I don't use any other credit card at all. There are some credit union ATM's around, but mostly I have to pay the $2.00 fee. I can get around it by using the cash back option at grocery stores, and the like. Sometimes it sucks but it's worth it knowing that I don't have any accounts with the big banks. There are advantages where loans, CD's etc. are concerned. The rates and stuff like that seem pretty comparable.
     
  5. ymc

    ymc Member

    Joined:
    Nov 18, 2002
    Messages:
    1,969
    Likes Received:
    36
    The alternative is to nationalize all "too big to fail" banks just like what China is doing. You have to do this because trust on these banks are broken. Another way to do this is to let them fail, in the short term (ie 10+ years) will be painful but in the long run, new players will take their places.
     
  6. ymc

    ymc Member

    Joined:
    Nov 18, 2002
    Messages:
    1,969
    Likes Received:
    36
    I think AIG is still far from paying back $100+ billions of TARP money. Please correct me if I am wrong.
     
  7. ymc

    ymc Member

    Joined:
    Nov 18, 2002
    Messages:
    1,969
    Likes Received:
    36
    The key here is AIG. GS got $12B from AIG. Did GS pay interest for it??? :rolleyes:
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now