Have I told you lately how much I hate those Davos pukes?
A call to utilize the current global economic crisis as a panic in
which governments worldwide can move to nationalize banks is emerging
from the 2009 World Economic Forum in Davos, Switzerland.
From WorldNet Daily.
"The forum's founder, Klaus Schwab, told CNN yesterday the current
global economic slowdown is a "transformational crisis" that should be
utilized to shape a "new world."
So, first my day was trash, it got more trashed. I shrugged it off, thought it could have always been worse and then I read this malarkey coming out of Davos. It's clearly not just me. There's a whole lot of shaking going on, peeps.
If this number is right - and it's Davos so I'm thinking it's probably not, so let's say it's half right - this is still a lot of toxic assets. Okay, we always knew it was bad. We've already blown the first 700 billion - and by abandoning the true intent of TARP and that was requiring banks to get the toxic assets off the books in the first place, we're no further along in the process. In fact, we're behind. (IHTSITYS) Load the lardbutt stimulus bill the Messiah and his minions are proposing onto the National debt barge and that $1.1 trillion dollar sucker worth of debt is going down.
Roubini (ed. note: New York University professor at the Stern School of Business and Davos devotee) estimated that the worldwide crisis in bad bank assets will
extend far beyond the Collateralized Mortgage Obligation problem caused
by subprime loans. He expects the crisis to include bad loans in
consumer credit cards, car loans and student loans, as well as
commercial loans that have been packaged into securities sold as assets
to banks and brokerage firms.
Roubini estimated the bad asset crisis would amount to $3.6
trillion, about half of which he believes will be held by U.S. banks
and brokerage firms
Stiglitz's (Colombia University professor and 2001 Nobel economics laureate who
advised the incoming Obama administration during the transition is also a Davos barfly) nic is Dr. Doom. I would like to add 'and Danger' to that moniker.
Stiglitz reasoned economic incentives dictated that private bank
managers – if left in place after injecting TARP funds without
government control – would "have incentives to pay themselves bonuses,
to pay shareholders dividends and to use bailout funds to make
acquisitions."
"We need to run these banks for our interest," Stiglitz said,
arguing the Obama administration should move to nationalize banks.
"The government could not do worse than the banks themselves
have done," he observed, insisting TARP bailouts made no sense unless
the government ended up controlling the banks.
"You can call it 'conserving the banks,' if you want to use a nice term," Stiglitz said.
It's all here.