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Originally Posted by dalakhani
In all seriousness, when this started locking up last summer the cost of commercial paper and the Libor went through the roof. Back then, it was more a liquidity issue than one of solvency.
A year later, that has changed. With all of the losses over the last year, banks are hoarding cash now because its all they have. And if they don't have cash, what are they going to lend ? And if they won't lend to each other without charging ungodly rates, what will that do to rates to consumers?
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It's not a good situation, no doubt. I just think there's an incredible irony here that all the bigwigs invested heavily suddenly need the taxpayers to bail them out, yet when it comes to them giving more money to help those truly in need then we are suddenly becoming a bunch of socialists. I believe in the golden rule. And last I saw the golden rule doesn't say f*** over others so when you are in need they will save your ass. Let's make it fair, the taxpayers bail out the wealthy, and in turn the Bush tax cuts are repealed for the wealthy to help pay for it. Then I'm 100% on board.