Major banks are buying more of the toxic assets that have gotten them in trouble. Normally, I don’t care how other people invest their money, but it’s frightening that these banks are using taxpayers money to “double down” on losing bets while raising the interest rates and fees charged to their customers.
Bailed-Out Banks Eye Toxic Asset Buys (Financial Times)
Bailed-Out Banks Face Probe Over Fee Hikes (The Australian News) “Unhappy customers can cancel their accounts.”
I think it insane. Has the U.S. Govt lost the plot???
Maybe it’s a not bad idea to limit involvement in the bidding and buying process to acquire those toxic assets to Institutions that don’t owe TARP funding, although in the overall scheme of things I doubt if it will have much impact on the taxppyers final position down the track.
The thin line between Hedge Funds, Mutual funds and Banks with their respective interwoven connections makes any such regulation highly problematic in terms of practical success.
I think the tinkering on the edges will eventually have to give way to full scale assault to finally write down all of these toxic assets remianing on Bnaks Balance Sheets once and for all unless you’re content to allow the current untenable position to drift along.
The best way out of drugs is cold turkey. Best wishes
It’s free market capitalism that’s lost the plot, if it ever had it that is. There is not enough planet to go round for the unsustainable lifestyle that is the requisite of continuous growth.
Read both links and I read the Business section of the newspaper daily.
Still. Don’t. Get. It. My economics courses are not helping at all.
I am catching up with your posts, but I am not catching up with the economy…
“I saw you sitting by the cellar door, oh baby can I have some more -
the needle and the damage done, a little bit to everyone…”
The economy acts indeed like a heroin junky.
It’s maddening. Tomorrow is tax day, and I’ve been putting off filing my taxes. I actually owe money, which for me seems insane since I’m a single mother with no help.
And to think that part of my tax money is going to be spent bailing out these huge corporations.
But who will bail me out when I need help??
Abigail, sorry to say but the U.S. government Hasn’t had a clue in anything for about the last 40 years or so. It just keeps getting worse. One lousy leader after another. I have never seen a country more intent to follow in Romes footsteps. Just like them we are destined to eventually collapse to the point where Democracy will be a thing of the past and our vote won’t count for anything…..hmmm never mind we are already there.
yeah, those are the bad guys…
Hope for better days…
I can see the day coming when people get billed $5 for every time they use their debit card. Why do they use those things to buy a pack of gum anyway?
Great, Sera, with the single word “toxic,” I now have Britney Spears lyrics in my head.
HELP.
Well, I’m just wondering why anyone should pay their taxes when Geithner, who as Treasury Secretary is the head of the IRS, couldn’t even pay his own taxes. It may be time for some civil disobedience…
A great post, Sera. You looked like you were at The Greek Theater in L.A. Yes, many good comments here. Toxic is a good word!
CEO should really get some tough love. That makes me mad, mad, mad…