vailian

Maybe I am very stupid, but this desperate game governments all over the world are playing called "Rescue the Banks" seems to be designed to save the greedy idiots who got us into this in the first place. Tax revenues handed over in great dollops to financial institutions will certainly be used first to finance the life styles of bankers, and only if there is something left over, will be available for lending.

My solution is as simple as pie: if the bank is really broke, than it should declare bankruptcy. If the government deems it essential, it can take it over and start by firing all employees (thus voiding their bloated contracts) and hire back those who seem honest and competent, but this time at normal salary levels.

Meanwhile, if the government's aim really is to provide loans, why can't they do it directly (as they did for a long time, and successfully, with Fanny Mae), rather than continuing the proven corruption of the banking industry?

Or am I missing something vital here?

# posted by vailian : 5:57 PM