A trillion here and a trillion there
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73Zeppelin wrote:
Afterwards, they would be returned to the private sector.
Agreed, after they have paid the taxpayers for the money they lent.
73Zeppelin wrote:
Bretton Woods was a horrible idea
I don't say Bretton Woods was the best way to organize monetary systems especially because it was based on the good will of one. Nonetheless the 'no organization at all' led to a gigantic gamble on moneys and led to the creation of many derivatives to cover and counter-cover and over-cover the risks which are now exploding in our faces. If we are able to stabilize relationships between moneys, a lot of stability will be injected into the system and a lot of 'virtual covers' would be unnecessary. The problem of the reference is of course a major obstacle, I guess many would not accept the Euro, which is IMO a 'better' currency because its emission is not controlled by political motivations.
73Zeppelin wrote:
One of the better ideas I have come across is to have government legislation that requires banks to pay for "failure insurance"
Knowing that banks can lend 50 times the money they haven I guess the insurance policy would be high.
The law, in its majestic equality, forbids rich and poor alike to sleep under bridges, to beg in the streets, and to steal their bread Fold with us! ¤ flickr
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AndyKEnZ wrote:
Nah, every attempt to regulate the banks in the past has failed. This time the solution has to be more drastic.
I agree - I propose the insurance premium plan whereby banks are required to pay risk-insurance premiums that increase with increased leverage and increased risk. Furthermore, if the bank defaults the insurance payout goes to a regulatory body who can use the money to repair any economic damage caused by the bank failure. No nationalisation required and the bank has incentive to keep its risk-taking under control. This could also be accompanied by legislation on executive incomes that tie them to concrete performance standards and rules that forbid compensation to be tied to level of profit.
73Zeppelin wrote:
I propose the insurance premium plan whereby banks are required to pay risk-insurance premiums that increase with increased leverage and increased risk.
How about anyone or any business that takes out a loan is fully responsible for paying it back no matter what.
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73Zeppelin wrote:
I propose the insurance premium plan whereby banks are required to pay risk-insurance premiums that increase with increased leverage and increased risk.
How about anyone or any business that takes out a loan is fully responsible for paying it back no matter what.
Go back to sleep, welfare boy. You're out of your league.
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Go back to sleep, welfare boy. You're out of your league.
I don't need your stupid fake loans.
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It is good to keep your mouth shut and let the world think you are a fool, rather than open it and prove them right.