Comments on: Let them fail, then we will eat the carcass http://www.thedisciplinedinvestor.com/blog/2008/09/27/let-them-fail-then-we-will-eat-the-carcass/ Investment Disciplines and Timely Advice. Fri, 10 Feb 2012 21:15:03 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: TimTheFoolMan http://www.thedisciplinedinvestor.com/blog/2008/09/27/let-them-fail-then-we-will-eat-the-carcass/comment-page-1/#comment-3970 TimTheFoolMan Sun, 28 Sep 2008 18:53:26 +0000 http://www.thedisciplinedinvestor.com/blog/?p=962#comment-3970 Andrew, I'd love to see some commentary about the comment from dlr above. One of the questions that comes to mind is, "Who would bail out these other banks?" Are there enough other banks that are strong that could step in and take over the assets of the weak and dying? Other thoughts? - Tim P.S. I love hearing your input on TWIT. It's interesting to hear your opinion balanced against that of Dvorak and Calacanis. Andrew, I’d love to see some commentary about the comment from dlr above. One of the questions that comes to mind is, “Who would bail out these other banks?” Are there enough other banks that are strong that could step in and take over the assets of the weak and dying? Other thoughts? – Tim

P.S. I love hearing your input on TWIT. It’s interesting to hear your opinion balanced against that of Dvorak and Calacanis.

]]> By: dlr http://www.thedisciplinedinvestor.com/blog/2008/09/27/let-them-fail-then-we-will-eat-the-carcass/comment-page-1/#comment-3953 dlr Sat, 27 Sep 2008 23:33:28 +0000 http://www.thedisciplinedinvestor.com/blog/?p=962#comment-3953 The FDIC's take over of WaMu, showed us the correct way to deal with the "banking crisis". If the FDIC got busy and closed a couple of dozen more banks with balance sheets that stink to high heaven, the entire "crisis" would be over. Just like that. There wouldn't be any need for a bailout, of any kind. The stockholders and bondholders of the weak and dying banks would lose big bucks, but they are exactly the people who SHOULD take the hit on this. The rest of society would get nothing but benefits. The banks assets would be transferred to a well managed bank, with a strong balance sheet, who would begin to loan against them again. The economy would get moving again. The US taxpayer, and Congress, could go back to sleep. No $700 billion dollar bailout, no increase in the federal debt, no social injustice. Best of all, it would be QUICK (the FDIC is already in place, and obviously capable of doing the job). All they would need would be a little bit of encouragement from Bush, to move things along and get these things resolved. The FDIC’s take over of WaMu, showed us the correct way to deal with the “banking crisis”. If the FDIC got busy and closed a couple of dozen more banks with balance sheets that stink to high heaven, the entire “crisis” would be over. Just like that. There wouldn’t be any need for a bailout, of any kind. The stockholders and bondholders of the weak and dying banks would lose big bucks, but they are exactly the people who SHOULD take the hit on this. The rest of society would get nothing but benefits. The banks assets would be transferred to a well managed bank, with a strong balance sheet, who would begin to loan against them again. The economy would get moving again. The US taxpayer, and Congress, could go back to sleep. No $700 billion dollar bailout, no increase in the federal debt, no social injustice.

Best of all, it would be QUICK (the FDIC is already in place, and obviously capable of doing the job). All they would need would be a little bit of encouragement from Bush, to move things along and get these things resolved.

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