FED refuses to tell anyone who is getting bailout money

[dc dalton]

They say it would stigmatize some banks ... yet they want people to feel safe in their bank and investors in those banks to NOT bail out of their shares?

Sounds to me like if the truth were known there would be a whole lot of people getting their butts out of bank stocks and emptying their accounts .... I really have to think it is a WHOLE lost worse than we know, a whole lot worse

http://bloomberg.com/apps/news?pid=2...6TI&refer=home

[archangel689]

of course. if they didnt have anything to hide they wouldnt be hiding it would they

[Bug44]

They say it would stigmatize some banks ... yet they want people to feel safe in their bank and investors in those banks to NOT bail out of their shares?

Sounds to me like if the truth were known there would be a whole lot of people getting their butts out of bank stocks and emptying their accounts .... I really have to think it is a WHOLE lost worse than we know, a whole lot worse

http://bloomberg.com/apps/news?pid=2...6TI&refer=home

Sigh... Lock and load boys... Lock and load... Report to your sectors when the SHTF

[Wild Bill Klinton]

CHICOMS and Fort Knox is: M. T.

[phillyd2]

Its not the selling of shares they are worried about - the market has already taken care of that - but what scares them to death (and rightly so!) is if they say that bank XYZ is in trouble everybody and their mother would be trying to withdraw their money. That's what they call a panic and if it were to happen it would be game over - no if ands or butts about it. Most now joking about SHTF would then be standing in line for free gov't cheese.

[ReconLdr]

This whole bailout has me PISSED OFF. They are using my money and everyother hardworking Americans money to bailout these institutions that already take so much of it.

One of the banks that received "our" money has already given $500 million in bonuses this year. But that is ok because it was based on last years performance... If last years performance was soooooo good to warrant bonuses in the first place they shouldn't need to be bailed out.

I am not the sharpest tool in the shed by any stretch of the imagination but, this is nuts.

[PocketProtector]

I didn't get any.

[mojo]

Its not the selling of shares they are worried about - the market has already taken care of that - but what scares them to death (and rightly so!) is if they say that bank XYZ is in trouble everybody and their mother would be trying to withdraw their money. That's what they call a panic and if it were to happen it would be game over - no if ands or butts about it. Most now joking about SHTF would then be standing in line for free gov't cheese.

Yep ... they don't want a run on the banks. Remember when IndyMac was failing and the news showed people waiting in line to withdrawal their money.

Why don't they want that? With fractional banking, the banks don't have enough paper money to give to everyone. For them to have enough money, they would have to do one of two things:
1) Call back EVERY outstanding loan/line of credit immediately. We know how well that will work
2) Borrow money from the FED or other banks. No bank would lend that kind of money in far of them being next.

Once a run starts, it will spread very fast.

[dc dalton]

Yep ... they don't want a run on the banks. Remember when IndyMac was failing and the news showed people waiting in line to withdrawal their money.

Why don't they want that? With fractional banking, the banks don't have enough paper money to give to everyone. For them to have enough money, they would have to do one of two things:
1) Call back EVERY outstanding loan/line of credit immediately. We know how well that will work
2) Borrow money from the FED or other banks. No bank would lend that kind of money in far of them being next.

Once a run starts, it will spread very fast.

You are of course absolutely right and the effects would be devastating but then you would have a 'run on the stock' where EVERYONE would dump their shares for anything they could get and THAT would then wipe out those assets.

Either way it wouldn't (and won't) be pretty

[crakkajakka15]

dosent suprise me they wont tell you who is getting what...learning from the country where the money came from lol



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