CNBC 下午新闻的一些看法

darth

FDIC collects fees from banks as premium, it runs like a state-own insurance company for banks.  If a bank gets in trouble, FDIC goes in and takes over.  It gives back people's deposit and sell th ...
NewMember 发表于 2009-3-19 19:24

Therefore the only solution is nationalization. No other way out.

slcgh

有见解，顶一下

zhyangi

Ding

pqu

NewMember, I do very enjoy reading your replies.  It does provide very rich information.  I also believe that nationalization is the best and most efficient approach to stablize economy.  However, I also believe people in DC are brewing plan B or plan C based on the following reasons:
1. "Nationalization" is still a very sensitive word in a capitalism country.  Though politicians would like to try their best to save their Banker buddies, they might not want to bet on their futures.  There were many debates here and there a few weeks ago when government planned to own a major stake on C.  Surprisingly, people pay much attention on the word "Nationalization" instead of whether or not it is an effective solution.  
2. AIG seems setup an example that nationalization might not really help or help with tremendous cost.  If C is nationalized with similar $170B cost, what happen if BAC, WFC, or even GM failes?  How much money government can really provide to nationalize all trouble entities? And even more importantly, for all the money spent on nationalization, does it really achieve the goal it is supposed to.

With above reasons, I believe nationalization is still on the table but would be one of the last choice in case all other options not working out.

Similar as "Too big to fail", I think we might pay too much attention on "C has so many investors and it is so critical and the government will not let it fail".  My take is if the government has any approach to stablize the market, it can let any company fail if it is necessary.  They are the people who make the law.  They can rob our money without even a "sorry".

For C's case, I don't think FDIC will help.  As the information that the news tries to distribute, FDIC is not the right entity to back financial products C or AIG got fire with.  However, an entity similar to FDIC designed specifically for taking over institutions with risky financial products might be the plan in their mind.  

Though saying so, we are really guessing and making wishes.  People in DC and Wall Str are the people controlling the media.

LadyLucy

顶!!!

风清扬

妞妞

分析得很有道理, 顶!!!

dennis

wishful thinking.

BlueRiver

Very interesting analysis, I do agree with you that the media always plays a funky role - soaking, filtering, and consequently, misleading. If you read the housing data carefully, you know it's getting worse, not better. What most people get is : 20%+ increase, it's a good sign. But the reality is : the condo/apt experiences a surge, while SFH is slumping.

You may over-analyzed the news. It's a 2-fork proposal : FA is getting worse, administration see more bank failures are coming; It's also a backstop to prevent the dominoes from falling, it will be disastrous. This news itself does betray what a big hole the financial institutes had dug

OFDMGuy

1# pqu

To collaborate with your thesis ... didn't we hear from the media that Citi shares are hard to borrow and Citi shorts are being squeezed? The truth is that they don't want the public to short Citi here so that 'they' can exit large number of shares at good price. We shall find out in a couple of weeks.

unipeak

Ding......

gldloser

Cobra

再顶！

李隆基

顶！

银河金星

“Such authority would allow the government to seize control ofcompanies that posed a risk to the system and unwind their businesses inan orderly, yet expeditious fashion. Such authority would presumablyallow the government to amend contracts, as necessary.”

大概会unwind their (maybe C, AIG, GM,  两房 etc.) businesses in an orderly, yet expeditious fashion.
值得关注， 可能会成为以后一段时间的炒作题材及Market mover!

sandera

thanks.

lovehutong9

ding.make sense.

Ponzi

newnewhand

Ding!

menghu

非常不错的看法。顶