More Money Needed for Banks

Clueless House Speaker Nancy Pelosi says more money may be needed for banks:

Speaking on ABC’s “This Week,” Pelosi resisted the notion that the government would nationalize some banks, but when asked whether more funds would be needed above those already approved for the TARP, she said that “some increased investment” in return for equity might be necessary.
“Change has to happen in terms of what is done, what the transparency of it is, what the accountability of it is,” Pelosi said. “Only then would we be able to pass any additional funding.”
With banks reporting ever-increasing losses, Wall Street has been hoping for new plans to tackle the financial crisis from the newly arrived administration of President Barack Obama.
But some segments of the public, especially those who own financial stocks, fear that the government might seize ailing banks, getting rid of their bad assets and making a profit where possible but also wiping out their shareholders.

Whoever still owns bank shares has to be out of his mind. Dump that crap. The government will dilute your holdings and destroy your wealth. House Speaker Nancy Pelosi is the epitome of bureaucratic arrogance. She has absolutely no idea what she is talking about. Her unquestioning bailout policy will be instrumental to the destruction of the US economy.

TARP I hasn’t worked. And before even embarking upon TARP II, which will also not work of course, we are being prepped for yet more bank bailout money. I hope people will hold Pelosi and other enablers accountable once we see the inevitable consequences. Not a single thing she suggests will in the slightest fix our problems. It will perpetuate and aggravate them. My only wish is that people don’t pretend to be surprised once the painful collapse occurs.

Vice-President Joseph Biden said Sunday on CBS’s “Face the Nation” that Timothy Geihtner, who is expected to be confirmed Monday as Treasury Secretary, will first try to get more funding for TARP to help the banks.

Of course he will. It’s probably futile to point out that Geithner was making statements to the contrary just a few days ago:

Geithner also said Treasury had no current plans to request additional bailout money beyond the existing $700 billion already authorized, but said the situation was “dynamic” and required careful monitoring.

I have low expectations and hence do not expect anything else than more lies and deceit. Of course all these measures were and are bound to fail as already pointed time and again.

Unfortunately we have a fascinating propensity to keep listening to those people who have been, without a single exception, wrong on what they have been saying, again and again.

Everyone should pull out their money from US assets and put them into gold or silver. I still believe Silver has Bottomed out and reversed its trend. An interesting trend has emerged last week: The Dollar rose against the Euro and the Pound but at the same time gold and silver still went up in Dollar terms. This is a very strong sign of global delevaraging coupled with save haven investments. Since governments abroad are not acting any better, the current Dollar strength will likely continue for a little while. However, regardless of that, in absolute terms holding US Dollars in cash is a much bigger gamble than holding hard assets.


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