Comments on: Dems blast Geithner plan http://minnesotaindependent.com/48506/dems-blast-geithner-plan News. Politics. Media. Wed, 30 Nov 2011 23:48:28 +0000 hourly 1 http://wordpress.org/?v=3.1 By: b.jones http://minnesotaindependent.com/48506/dems-blast-geithner-plan/comment-page-1#comment-42211 b.jones Fri, 30 Oct 2009 22:21:14 +0000 http://minnesotaindependent.com/?p=48506#comment-42211 Seriously folks, how much more do you have to see. Barney Frank and his Democrat cronies are systematically destroying our nation. Control is what they want, control over your healthcare, control over businesses, control over almost every aspect of our American way of life. The only way that the American people can put a stop to this is to support,each and every conservative candidate running for office, even if they are not in your state.You can start right now by supporting Barney Frank's challenger for the 2010 elections - http://sholleyforcongress.us Seriously folks, how much more do you have to see. Barney Frank and his Democrat cronies are systematically destroying our nation. Control is what they want, control over your healthcare, control over businesses, control over almost every aspect of our American way of life. The only way that the American people can put a stop to this is to support,each and every conservative candidate running for office, even if they are not in your state.You can start right now by supporting Barney Frank’s challenger for the 2010 elections –
http://sholleyforcongress.us

]]> By: wow http://minnesotaindependent.com/48506/dems-blast-geithner-plan/comment-page-1#comment-42196 wow Fri, 30 Oct 2009 20:15:00 +0000 http://minnesotaindependent.com/?p=48506#comment-42196 Anyone thinking the conspiracy theorists are correct? The Fed appears to be the face of SOME group that seeks to control the world through currency. Every move they make (and seemingly in an expedited way of late) puts more power in their hands with no oversight for the American public. The Fed MUST go. They are the face of the most evil warmongers known to mankind. Anyone thinking the conspiracy theorists are correct?
The Fed appears to be the face of SOME group that seeks to control the world through currency. Every move they make (and seemingly in an expedited way of late) puts more power in their hands with no oversight for the American public.
The Fed MUST go. They are the face of the most evil warmongers known to mankind.

]]> By: s. benjamin http://minnesotaindependent.com/48506/dems-blast-geithner-plan/comment-page-1#comment-42159 s. benjamin Fri, 30 Oct 2009 15:28:44 +0000 http://minnesotaindependent.com/?p=48506#comment-42159 This white house is the most corrupt and powerhungery in our country's illustrious history. Impeach this moron. This white house is the most corrupt and powerhungery in our country’s illustrious history. Impeach this moron.

]]> By: Jerry Tingle http://minnesotaindependent.com/48506/dems-blast-geithner-plan/comment-page-1#comment-42158 Jerry Tingle Fri, 30 Oct 2009 15:24:38 +0000 http://minnesotaindependent.com/?p=48506#comment-42158 When Chairman Barney Frank began discussions about providing a way for financial institutions perceived to be too big to fail to be dismantled it reminded me of the way the FDIC operates. The FDIC sometimes alone and at other times in cooperation with state regulators deems that a local bank should be closed and not saved can swoop in on friday, close the institution, implement certain responsibility for losses and give the bank to another bank or financial institution. In these cases shareholders and bondholders are wiped out while the receivers of the deposits and facilities make out like bandits. The depositors are protected by certain dollar limits. I can understand shareholder's losing their investment because they have invested to be owners in the enterprise and understand their risks. I can understand the depositor being covered by deposit insurance. What doesn't make sense at the small bank level or at a high level of businesses such as Lehman Brothers, Merrill, BOA and other large institutions is the fact that Bondholders lose their investment to when in fact theirs is not an investment but a loan. As we see, government as well as private retirement accounts place money in Bonds that are held by banks and large institutions. The logic is, when a depositor deposits $100,000.00 in a bank it is used by the bank to make loans, which derives part of its income. The $100,000.00 is in effect a loan to a bank with no certain length (uness in a CD). Bonds are loans to a bank but do not carry FDIC Insurance. Since the failure of institutions can cause severe problems for retirement plans it makes sense to insure bonds in the same way FDIC Insurance insures deposits so Barney Frank should look at a way to offer federal insurance to cover Bonds and charge a fee for that protection to the financial institutions or to Bondholders. Such assurances would place more emphasis on the analyists that rate the Bonds so that the buyers of Bonds including retirement funds would be secure in that loan. Such changes would force companies to be much more competitive offering first class secured bonds to bond buyers. When Chairman Barney Frank began discussions about providing a way for financial institutions perceived to be too big to fail to be dismantled it reminded me of the way the FDIC operates. The FDIC sometimes alone and at other times in cooperation with state regulators deems that a local bank should be closed and not saved can swoop in on friday, close the institution, implement certain responsibility for losses and give the bank to another bank or financial institution.

In these cases shareholders and bondholders are wiped out while the receivers of the deposits and facilities make out like bandits. The depositors are protected by certain dollar limits.

I can understand shareholder’s losing their investment because they have invested to be owners in the enterprise and understand their risks. I can understand the depositor being covered by deposit insurance. What doesn’t make sense at the small bank level or at a high level of businesses such as Lehman Brothers, Merrill, BOA and other large institutions is the fact that Bondholders lose their investment to when in fact theirs is not an investment but a loan.

As we see, government as well as private retirement accounts place money in Bonds that are held by banks and large institutions. The logic is, when a depositor deposits $100,000.00 in a bank it is used by the bank to make loans, which derives part of its income. The $100,000.00 is in effect a loan to a bank with no certain length (uness in a CD). Bonds are loans to a bank but do not carry FDIC Insurance.

Since the failure of institutions can cause severe problems for retirement plans it makes sense to insure bonds in the same way FDIC Insurance insures deposits so Barney Frank should look at a way to offer federal insurance to cover Bonds and charge a fee for that protection to the financial institutions or to Bondholders. Such assurances would place more emphasis on the analyists that rate the Bonds so that the buyers of Bonds including retirement funds would be secure in that loan.

Such changes would force companies to be much more competitive offering first class secured bonds to bond buyers.

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