Bernanke says more steps needed to stabilize banks

[Joanne98]

Source: Reuters

LONDON (Reuters) - Federal Reserve Chairman Ben Bernanke said on Tuesday fiscal stimulus alone would not be enough to promote a lasting U.S. economic recovery and that further steps to backstop banks may be needed.

"Fiscal actions are unlikely to promote a lasting recovery unless they are accompanied by strong measures to further stabilize and strengthen the financial system," Bernanke said at the London School of Economics.

In his first policy speech since early December, Bernanke said that while an expected U.S. fiscal stimulus package could provide a "significant boost" to the economy, the government may need to inject more capital into banks.

He also said a large quantity of distressed assets on bank balance sheets made it difficult for banks to raise capital and lend.

Bernanke said the government could consider buying troubled assets, providing asset guarantees or setting up a so-called bad bank to buy assets from banks in exchange for cash and equity.



Read more: http://www.reuters.com/article/newsOne/idUSTRE50C35V20090113

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Is there anyway we can get rid of Bernanke? This is STUPID! Why don't they just take the money and deal directly with the homeowners. WHY go through the banks? We just gave them 350$ billion and they still aren't lending! This is a joke. It's NOT going to work!

[mucifer]

1. more money for his buddies.

[SpiralHawk]

4. "Smirk." - Cabal O' Fatcat Republicon Cronies

[ananda]

2. What needs to happen is a quick plug..

.. on all the looting by banks and other
businesses and institutions.

Then regulate regulate regulate and enforce
enforce enforce.

[ixion]

3. and by "steps" the grifter means he wants more cash

"Bernanke said the government could consider buying troubled assets..."

Of course, this is what the initial 350B was supposed to be used for. Instead, he just gave it to his buddies. Now he wants more cash.

It's time to run these thugs out on a rail.

[Raschel]

8. Ditto your post. I read 'money' when I saw the word 'steps'.

[Doctor_J]

5. Yes. The next step is for him to resign

He and Paulsen were given $700B and gave it to the banks without any oversight. That's probably not prosecutable, but it sure warrants firing.

[Fridays Child]

6. Or, as the CNN Headline News news crawl put it, this morning...

...to "stabialize" banks.

Regards,
The Typo Nazi

[Raschel]

9. They feel we don't need correct spelling anymore. We're just the dummies who hand over the cash.

[Raschel]

7. "Steps" = Money

[DJ13]

10. Helicopter Ben needs to forget trying to keep banks public

It would be cheaper, and lead to a faster, lasting recovery, to just nationalize the entire banking industry so the government can close out all the crap debt without concern for the investors.

Trying to keep these institutions public while expecting them to clear out all the bad debt is going to prolong the economic crisis.

Besides, as government entities the Fed and Treasury can utilize those financial institutions to be direct conduits for any future stimulus initiatives without the siphoning off of profits along the way.

It would also loosen up the constipated credit markets.

[SOS]

11. Michael Lewis for Treasury Secretary

Lewis provides the solution in an NYT op-ed:

"There are other things the Treasury might do when a major financial firm assumed to be “too big to fail” comes knocking, asking for free money. Here’s one: Let it fail.

Not as chaotically as Lehman Brothers was allowed to fail. If a failing firm is deemed “too big” for that honor, then it should be explicitly nationalized, both to limit its effect on other firms and to protect the guts of the system. Its shareholders should be wiped out, and its management replaced. Its valuable parts should be sold off as functioning businesses to the highest bidders — perhaps to some bank that was not swept up in the credit bubble. The rest should be liquidated, in calm markets. Do this and, for everyone except the firms that invented the mess, the pain will likely subside."

http://www.nytimes.com/2009/01/04/opinion/04lewiseinhornb.html

[Zorra]

12. Our financial instiutions are corrupt and incompetent, and need to be nationalized.

As private corporate entities they have proven to be a threat to democracy as well as a threat to our national security.

[w4rma]

13. BS. The banks just used our money to buy up other banks. They don't need *any* more money. (nt)

[closeupready]

14. Gets a BIG FAT NO from me!

:mad: