Send a Tweet
Most Popular Choices
Share on Facebook 2 Share on Twitter Printer Friendly Page More Sharing
OpEdNews Op Eds    H2'ed 4/8/09

LET ... INSOLVENT ... BANKS ... FAIL

Author 8941
Message George Washington
Become a Fan
  (5 fans)

The Congressional panel overseeing the bailout is blasting the government's approach, saying that the government has to close insolvent banks. Some quotes from the panel's new report:

All successful efforts to address bank crises have involved the combination of moving aside failed management and getting control of the process of valuing bank balance sheets...

[Bank liquidation would be] least likely to sap the patience of taxpayers [and] provides clarity relatively quickly [to the markets]....

Allowing institutions to fail in a structured manner supervised by appropriate regulators offers a clearer exit strategy than allowing those institutions to drift into government control piecemeal.

The following experts agree that the insolvent banks should be liquidated to save the broader economy:

  • The central banks' central bank, BIS
  • Many other leading economists

The choice could not be more clear: Break up the insolvent banks in an orderly manner, or the economy will not recover for many, many years.

[Original]

 

Well Said 2   Supported 2   Valuable 1  
Rate It | View Ratings

George Washington Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

George Washington


As a political activist for decades, I have rejoiced in victories for the people and mourned in defeats. I chose the pen name "George Washington" because - as Washington's biographies show - he wasn't a (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEdNews Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Top Financial Experts Say World War 3 Is Coming -- Unless We Stop It

Indonesian Health Minister Says Swine Flu Might Have Been Man-Made | Epidemiologists and Virologists Need to Weigh In

Obama Is Considering Doing Something Even Bush Didn't Try: "Preventive Detention" of People Who Will Never Get a Trial

How To Solve the Economic Crisis

The Four Reasons the Mainstream Media Is Worthless

5 Reasons that Corporate Media Coverage is Pro-War

To View Comments or Join the Conversation: