Jump to bottom


1 Zimriel  Apr 20, 2009 12:06:33am

I heard about this. It’s also in the Financial Times.

As background, here is Larry Summers, passive-aggressively hinting that he, personally, would prefer to let the banks pay it back:

On Sunday, Lawrence Summers, President Barack Obama’s top economic adviser, told NBC’s Meet the Press that repayments could eventually help the government provide further resources to help the sector. Such a move could also allow healthier institutions to differentiate themselves from weaker banks and free them from constraints on executive pay, and other activities, that come with bail-out money.

Now, here’s the minion walking back what Summers said. Note where the “BUT” kicks in -

The official, meanwhile, said banks that had plenty of capital and had demonstrated an ability to raise fresh capital from the market should in principle be able to repay government funds. <u>But</u> the judgment would be made in the context of the wider economic interest. He said the government had three basic tests. It needed first to “make sure the system is stable”. Second, to not create “incentives for more deleveraging which would deepen the recession”. Third, to make sure the system had enough capital to “provide credit to support the recovery”.

Needless to say, I don’t trust The One; he’s using this “unstable” system to keep control of the reins.

2 Mr. Sandman  Apr 20, 2009 1:16:34am

Uh, has either of you looked at and understood what is meant by the “three conditions” in this context to accept “pay back?” Seriously, actually think about whether this makes sense in any way, before just reflexively going “duurn, he wants totalitarian Marxo-communism.” Seriously, try to see it from a reasonable point of view. For instance, the condition that the funds being raised to make the payback is not being pulled from more deleveraging—one of the major banking schemes/swindles which led to this collapse— is not only fair but if not imposed could really mean more economic damage if banks start trying to “pay back” the funds by—for all intents and purposes—gaming the system to “make money” out of nothing—which like I said is one of the major factors leading to the economic crisis in the first place. Personally, I think in general that the administration is doing far too little to manage the economic crisis in a way that favors the “national interest” over the interest of rich bankers and the like. Why do you want so much for the bankers’ interests to be prioritized over the public interest— I really don’t get this logic.

3 Zimriel  Apr 20, 2009 1:52:31am

re: #2 Mr. Sandman

Why do you want so much for the bankers’ interests to be prioritized over the public interest— I really don’t get this logic.

First, thank you for your considered explanation of ‘to not create “incentives for more deleveraging which would deepen the recession”.’

But that still leaves my point, which was that “make sure the system is stable” is open-ended, and that I don’t trust the Obama administration to decide that on objective terms. This is the administration which is trying to shoehorn all manner of healthcare and welfare reforms at the same time as it’s working with the economy. That points to an unseriousness about “system stability”.

Also, “rich bankers” is an emotive term. It’s a class warfare term (why else point out their wealth?). And “national interest” is open-ended too: I suppose you, Mr. Sandman, know exactly what is in the national interest? I suppose you, Mr. Sandman, know how best to allocate funds from the evil “rich” class over there to the patriotic masses?

4 jamgarr  Apr 20, 2009 7:30:39am

Whatever the rules (or restrictions) on payback that existed at the time they took the money should rule. This making-it-up-as-we-go stuff needs to stop.

/Who is John Galt?

This page has been archived.
Comments are closed.

Jump to top

Create a PageThis is the LGF Pages posting bookmarklet. To use it, drag this button to your browser's bookmark bar, and title it 'LGF Pages' (or whatever you like). Then browse to a site you want to post, select some text on the page to use for a quote, click the bookmarklet, and the Pages posting window will appear with the title, text, and any embedded video or audio files already filled in, ready to go.
Or... you can just click this button to open the Pages posting window right away.
Last updated: 2016-01-01 10:29 am PST
LGF User's Guide RSS Feeds Tweet

Help support Little Green Footballs!

Subscribe now for ad-free access!Register and sign in to a free LGF account before subscribing, and your ad-free access will be automatically enabled.

Donate with
Square Cash Shop at amazon
as an LGF Associate!
Recent PagesClick to refresh
Trump Has Launched a Three-Pronged Attack on the Election Acts unimaginable just 4 short years ago... As President Donald Trump reflects on his sinking approval ratings and grows more desperate by the day, he’s been floating a dictator’s dream: postponingthe November election. Even Senate Majority Leader Mitch McConnell ...
6 hours, 37 minutes ago
Views: 90 • Comments: 0 • Rating: 1
Tweets: 1 • Share to Facebook
Harris, Parton, Ronstadt on Late Show, March 24, 1999 (Full, Stereo) "Trio II" was recorded in 1994 but not released until 1999, when Emmylou Harris, Dolly Parton, and Linda Ronstadt appeared on Late Show to perform Neil Young's "After the Gold Rush." The Glass Harmonica (or Armonica) was played by ...
10 hours, 12 minutes ago
Views: 104 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Ratched You deserve someone to show you mercy. From the creator of American Horror Story, witness the origin of one of the world's most iconic characters, Nurse Ratched. Sarah Paulson stars in Ratched, coming to Netflix on September 18. SUBSCRIBE: ...
1 day, 9 hours ago
Views: 194 • Comments: 0 • Rating: 0
Tweets: 0 • Share to Facebook
The Jaded Hearts Club - Reach Out I’ll Be There (Official Video) The Official Video for Reach Out I'll Be There by The Jaded Hearts Club. The new album You've Always Been Here is out 2 October, pre-order now: Listen to We'll Meet Again / Reach Out I'll Be There: ...
1 day, 10 hours ago
Views: 213 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Raised by Wolves — New Ridley Scott Television Series Mother was programmed to protect everyone after Earth had been destroyed. When the big bad wolf shows up, she is the one we must trust. Subscribe: Be the first to know more:HBO Max: hbom.axLike HBO Max on Facebook: ...
3 days, 8 hours ago
Views: 312 • Comments: 0 • Rating: 0
Tweets: 3 • Share to Facebook
Black Pumas - Confines (Official Live Session With String Quartet) “Confines (Live in Studio)” is available now to stream/download. It is from the deluxe edition of the Black Pumas’ debut album which will be released digitally August 28 and physically October 9. Pre-order in 2xLP, 2xCD and digital formats: ...
5 days, 6 hours ago
Views: 421 • Comments: 0 • Rating: 0
Tweets: 3 • Share to Facebook
Orville Peck - Smalltown Boy (Official Audio) Official audio for Orville Peck’s cover of "Smalltown Boy" by Bronski Beat out now: Pre-save / Pre-add Orville's new EP Show Pony here: Amazon - orvillepeck.lnk.toApple Music - orvillepeck.lnk.toiTunes - orvillepeck.lnk.toSoundcloud -  orvillepeck.lnk.toSpotify - orvillepeck.lnk.toYouTube Music - orvillepeck.lnk.toYouTube - Follow Orville PeckFacebook - facebook.comInstagram - instagram.comTwitter - @orvillepeck LyricsTo ...
6 days, 6 hours ago
Views: 464 • Comments: 0 • Rating: 0
Tweets: 6 • Share to Facebook
Norah Jones - to Live "To Live" is taken from Norah's newest album 'Pick Me Up Off The Floor,' out now and available to stream/download here: Connect with See Norah live: Music video by Norah Jones performing To Live. © 2020 ...
1 week, 3 days ago
Views: 648 • Comments: 0 • Rating: 0
Tweets: 1 • Share to Facebook
Future Islands - for Sure (Official Video) 'For Sure' by Future Islands, out now on all platforms: A Film by Samuel Jerome MasonFinishing by John HarrisonRendered with GarageFarmSpecial Thanks to Anna, Jemima, Mike, Willy, Saad, Eric, Arsen Perish the painI was impoverishedThose ties that windAnd ...
1 week, 3 days ago
Views: 651 • Comments: 0 • Rating: 0
Tweets: 2 • Share to Facebook
Andrew McMahon in the Wilderness - Get on My Wave I wrote and produced “Get On My Wave” with Kyle “King Tuff” Thomas the day we met last summer. I’ve struggled with releasing the song during the pandemic because it felt too happy; detached from the tumult of our ...
1 week, 3 days ago
Views: 640 • Comments: 0 • Rating: 0
Tweets: 2 • Share to Facebook