[Pen-l] Would bankruptcy have been the best for the banks ?

["Charles Brown" <charlesb@xxxxxxxxxxxxxxxxxxxxx>]

From: "David B. Shemano" 



Yes.  Bankruptcy and the threat 
of bankruptcy would have quickly 
resulted in a painful but necessary 
reallocation of resources from
 insolvent institutions run by
 idiots to more stable and better
 run institutions.  Instead, the 
government is presently reallocating
 resources to the insolvent institutions,
 thereby delaying necessary 
consolidation at best and creating 
zombie banks at worst.

I say this is as a proud 
CitiGold member.

David Shemano

^^^

CB: What would have been the 
specifics of the "pain" you mention ? 
 Would not the whole system have 
collapsed - a systemic threat - ?

And what about the historical
 pattern ? The monopoly corporations 
always get bailed, and aren't 
allowed to fail, such as LTCM, 
Savings and Loan beneficiaries
 of bailout, Chrysler in '79, GM now.
Finance press had the current known
bailout at $ 8 trillion behind the 
headlines, I believe. 
Doesn't that mean that our 
system is a monopoly 
system, not free market ?



 From: "Charles Brown" 
  Would bankruptcy have been the best for the banks ?

>> Question for Dave S.: Should those big Wall Street
>> banks have been allowed to go bankrupt ?
>> 
>> Charles
>> 
>> 





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