reply to post by pavil
You bring forth some interesting points, and I would be honored to reply in detail!
A great article can be found at the site listed below:
money.aol.com...
“In a statement Thursday, the Fed said it had authorized the expansion of swap lines, or reciprocal currency arrangements, with the other central
banks, including amounts up to $110 billion by the European Central Bank and up to $27 million by the Swiss National Bank.
The Fed also said new swap facilities had been authorized with the Bank of Japan for as much as $60 billion; $40 billion for the Bank of England and
$10 billion for the Bank of Canada.
All told, Fed action increased lines of cash to central banks by $180 billion to $247 billion.”
Now this is just $247 billion that was released in the past several weeks. It has been $400 billion before that or as a part of that quite recently.
I’d need to research that a bit more to comment on an actual total.
Lou Dobb’s gave the rating companies (e.g. “Dunn and Bradstreet” “Standard and Poors” “Moodys” et al) some major grief on tonight’s
show over their cozy relationships with the banking operations they gave “AAA” ratings to that like failed.
The NY Times had some good journalism on punishing the corporations that had a big party and then served us the bill. It was however governmental
deregulation that caused lending standards to be lowered. Congress is attempting to strictly blame the lenders, after allowing the party to get
thrown in the first place.
The finger pointing won’t fix the economic problems “Phil Graham Style Deregulation” caused. Congress made a lot of mistakes, and responsible
regulations need to be enacted as part of the solution. The solution is not to throw money around in a market so it won’t get lent at all. There
must be an inherent corresponding duty for banks to lend to legitimate borrowers that are financially responsible; so that the beneficiaries of the
Federal Reserve's largesse (the banks) do in fact lend to responsible Americans. (e.g. Lend to people in our Country, not in Uganda.)
As far as criminal liability for the financial bigwigs, they will make a Scapegoat or two. Punishment won’t gain the taxpayers a Dollar back unless
it is accompanied by Civil Forfeiture, which is some Draconian stuff. The Federal government is terribly powerful, and can punish anyone regardless
of true culpability for the crisis. They might grab some black guy from a lineup that "fit's the suit," but what about the big contributors?
It would benefit Americans to see Federal lawsuits filed to regain assets from the CEO’s that profited so handsomely. Follow the money and grab
some back in Federal Turnover actions.
Turnover actions can certainly be brought where a company is put in voluntary or involuntary bankruptcy. The Federal government, being the largest
creditor of many of these companies, has the power to bring the extravagant bonuses back in under turnover actions. 1-The Federal Government puts the
culprit company in Bankruptcy to Reorganize it, and 2-Compels turnover under State law of Fraudulent Conveyances (5 year reach back to seize
fraudulent transfers) or under the Federal Law of Preferential Transfers (Alas, a mere one year reach back period).
Wouldn’t it be ironic to see the same companies that lobbied for Bankruptcy Reform becoming the “Test Cases” under the new reforms!
It just seems so tantalizingly right, yet twisted in a beautiful sort of way!
