governments buying stakes in banks good/bad

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Governments buying stakes in banks around the world,

just heard that on CNN, is this good or bad.

Seems they are getting too much power, they could crash
the world financial system with this power.

I notice the candidates always saying WE, like this is the American people's
fault.

  • Bad.... very very BAD...
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  • Profile picture of the author DirectoryKing
    Is very bad when government have to meddle in financial affairs dealing with a free market for all. This is just the beginning of federal expansion. It will get worse,mark my words.
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    • Profile picture of the author Mike Wright
      Whether it is/was good or bad is immaterial.
      Unconstrained personal, corporate and investor greed
      made it neccessary ... before the system totally collapsed.

      Without direct intervention, the crash would have been far
      worse and longer lasting than the Great Depression.

      Your choice!
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      • Profile picture of the author Alexa Smith
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        • Profile picture of the author HeySal
          It's not a bad thing at all........as long as you want to live in a fascist society.
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        • Profile picture of the author Mike Wright
          Originally Posted by alexa_s View Post

          It isn't ever "our choice", though. That's part of the problem.

          The choice is between apathy and action Alexa
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      • Profile picture of the author Dan Thompson
        Originally Posted by Mike Wright View Post

        Whether it is/was good or bad is immaterial.
        Unconstrained personal, corporate and investor greed
        made it neccessary ... before the system totally collapsed.

        Without direct intervention, the crash would have been far
        worse and longer lasting than the Great Depression.

        Your choice!
        What Mike said ^^^

        You can debate about it being good or bad until the cows come home, but if the money wasn't invested there would have been huge consequences. People would stand to lose savings, houses, pensions, and so on, it doesn't bare thinking about.
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    • Profile picture of the author pingshepherd
      Banned
      I agree the government should stay out of the markets.
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  • Profile picture of the author ahuddy
    Government should always stay out of the market. The market will always correct itself, it just takes time. Unfortunately no one with power in our government has any economical sense.
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  • Profile picture of the author sudarshanwagh
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    • Profile picture of the author myob
      The present crisis started not because the market was allowed to run its selfish course, but because the government interfered with the operation of private businesses and allowed excessive growth of money and credit.

      Take housing, where the crisis began. The government interfered with private decision-making by requiring banks to make loans to people who could not afford them, through the 1977 Community Reinvestment Act. It forced banks to improve lending and service to borrowers in poorer neighborhoods, including people with poor credit histories. Some of these borrowers only qualified only for subprime mortgages, which had introductory low rates that eventually rose.

      In another example of government interference, Fannie Mae and Freddie Mac were given implicit government guarantees, letting them borrow at favorable rates. The rationale given by both mortgage companies was that this was the way that less-affluent Americans could get homes of their own--housing that they could not afford under otherwise. While the government was pressuring financial institutions to increase lending, the Federal Reserve was lowering interest rates to try to avoid a recession. This vast expansion of money and credit had to go somewhere--and it went into an inflation of housing prices of horrendous proportions, the real estate bubble that eventually burst.

      The mission of the central bank is to keep a sound currency. The Fed failed us by interfering with basic market principles of supply and demand.
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      • Profile picture of the author energyguy
        smells like socialism to me....the government needs to back off and stay away. The economy is only bad because they have scared everyone into believing that it is....

        Ask all of the IMs out there....are their incomes suffering over this? I doubt it.

        BTW, anyone recall why the Boston Tea Party happened?
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  • Profile picture of the author espacecadet
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    • Profile picture of the author HeySal
      Originally Posted by espacecadet View Post

      I


      Isn't that what Nazi Germany did back in the 1940's?
      Yes it is how he did it - exactly, step by step. When the
      government controls the banks, or the banks control the
      government -either way you get fascism or communism, but
      you sure won't see a Republic.

      WE financed the Corps and banks with money (forced out of
      our pockets) that WE worked for - and they spent it at will to
      finance stakes in these companies and WE do not get the
      returns on the investment - the government does, and they
      can do what they will with them. And they can just keep taking
      from us to buy more.

      Whether this money is going to be used to finance a communist
      or a fascist society is the only question left.

      I would advise anyone who may at this point be a financial liability
      to the elite to be very, very careful, and to get as self-reliant as
      possible as quickly as possible. Homeland security has already decreed
      that in an emergency the old,the disabled, and THE POOR will be
      unattended or saved last.
      Their philosophy is that the old and disabled have less likelihood to
      make it through the heat anyway in a major crisis (the excuse anyway)
      -- but the POOR?
      Are you telling me that young poor can't be strong enough to survive?
      To look at that philosophy and not see danger coming is to be so totally
      subconscious to your surroundings that you would risk the life of anyone
      trying to save you in a fascist/communist take over. So if you are a
      "conspiracy theory" screamer, don't be surprised if you are on your own
      when the excrement hits the air-conditioning.
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      Sal
      When the Roads and Paths end, learn to guide yourself through the wilderness
      Beyond the Path

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      • Profile picture of the author Jeremy123
        I read on Reuters that banks have been borrowing 400 billion a day
        from the Fed.

        CNN reported states like NY and Michigan are running out of money
        and will borrow from the Fed, unemployment money is running out.

        There is a lot more money being injected than just the 700 billion,
        nationally and internationally like the UK, France, Germany, and Italy.

        Bloomberg radio spoke how everything has been over leveraged, and it
        will take a few years for things to de-leverage.

        Coming Soon: The 600 Trillion Derivatives Emergency Meeting - Seeking Alpha

        I think stocks will remain basically stable through the election, and maybe
        through the inauguration, then the real crisis will begin.
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