drieuxster (drieuxster) wrote,

More Proof The CRA Destroyed Freedom

Sir Fred Goodwin death watch: Part 1.

Clearly if the Royal Bank Of Scottland Tanked, it must be because of the Darkies and the Community Reinvestment Act of 1978, since how could it be caused by anything else...

Besides, who can doubt that THEY are evil:
The line about the "dagger at the heart of capitalism" is purpler than what I would have used, but what Hempton is getting at is that if you expropriate investors' holdings without following a clear, transparent process, you risk scaring away future investors for years and years. The clearest case of this in the past year was at Washington Mutual, where the FDIC seized the bank and largely wiped out its unsecured creditors even though WaMu was not obviously insolvent.Hempton wrote a long screed about what a disaster this was, because the "capricious" nature of the seizure made it impossible for creditors at other banks to know whether they'd be protected or not. His point is not so much an emotional one as a practical one: If we're going to nationalize some big banks, it's important that we at least try to follow a clear process for determining who gets nationalized and how different stakeholders are treated. Right now, all the big banks are healthy according to the standard capital adequacy measures that regulators use. We know that's not right, but it would be useful to have a straightforward means of showing that it's wrong. The Treasury's planned "stress tests" could be part of that, and so could a process to set market prices for currently untradable toxic assets.
[ cf Paul Krugman: Smart economist, or all-knowing being? ]
Clearly the fact that there was Federal Stuff there shows that it had to be because of the CRA, and all of that Gay Stuff Too.....

Clearly it is all caused by Evil and Darkies and Pooh...

Yes, that must be the real solution here, we round up Pooh and all of his friends, and send them to the Wall!!!

That way all children will know that they are safe from the Evil and Sinister Pooh...
Tags: economics, generic_fear

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