Banker Bail Outs Or Bank Bail Outs?

[FTBagain]

A thought struck me late last week whilst watching the US pass the Wall Street Bail Out. I appreciated and agreed with the protesters who had the signs saying "Jail not Bail". However, there glorious leader did eventually pass the bailout plan claiming that if they did not the system would collapse take Main Street with it.

Now it occurred to me that both camps have a valid point, but they were not quite clear about it. The fact is we need the banks, if they fail we are all potentially in trouble. However we do not need to current bankers (and as Rothschild said on New 24) we do not need as many banks as we currently have, either.

So it seems to me that what we need is a way of bailing out the few important banks (whichever they are), letting the rest go down (by take overs or whatever) and then identifying those irresponsible bankers who helped get us to this point in the first place (not forgetting that there are many others who contributed as well).

But how? That is the question.

[_w_]

But how? That is the question.

Let a big one go bust. The state buys out the branch network and core commercial lending operations from the busted entity. All debts etc. are nearly wiped out, the crumbs from the liquidation process being shared amongst bondohlders.

Wait for collapse of next bank. Repeat.

Do it until the enire banking system, or more acurately its productive bits, is nationalised, the rest having disappeared of the face of the earth.

<Edit to add: privatise when a new generation of businessmen shows itself to have enough integrity to be trusted with commercial banking licences>

Edited October 5, 2008 by williamdb

[FTBagain]

Let a big one go bust. The state buys out the branch network and core commercial lending operations from the busted entity. All debts etc. are nearly wiped out, the crumbs from the liquidation process being shared amongst bondohlders.

Wait for collapse of next bank. Repeat.

Do it until the enire banking system, or more acurately its productive bits, is nationalised, the rest having disappeared of the face of the earth.

<Edit to add: privatise when a new generation of businessmen shows itself to have enough integrity to be trusted with commercial banking licences>

Could be a long wait then!

[_w_]

Could be a long wait then!

10 years at least. Anyone older than a toddler has already been bred on debt, greed or overconsumption. I'm not even kidding; you hear kids nowadays negotiating their homework expecting to get something in return.