As rumors of nationalization swirl about Bank of America (NYSE:BAC) and Citigroup (NYSE:C), the market indices have fallen.
On Feb. 23, Larry Kudlow, co-host of CNBC's "The Call," asked CNBC Chicago Mercantile floor reporter Rick Santelli if the government should be involved in propping these troubled banks. Santelli made waves on CNBC's Feb. 19 "Squawk Box" railing against the Obama Administration's mortgage bailout plan.
"Listen, I think the government should stay out," Santelli said to Kudlow about the banking system. "I mean, look at the last plan where we put that money in there. There was talk about obviously the preferred shares and the dividend payments and paying it back, and now that's under review. You know, so we're revising the last plan. We're throwing more money in."
The resolution, according to Santelli, would be to protect the depositors, but let the institutions fail.
"You know Larry, I don't know how to put this in legalese, but there should be some type of special bankruptcy organization that the government set up so if the banks go down, they do their best to organize it - make it so that it's not going to make the system collapse, guarantee, get the FDIC," Santelli said. "But I think we're throwing ... good money after bad and the bank system has been in shambles for how long with so much money thrown at it, some involuntarily. And I don't see the progress. Keep the government out."
Santelli said that helping out the regional banks that didn't engage in risky behavior would save the banking system. The other banks are largely insolvent and not worth saving, he contended.
"There's a lot of regional banks we can try to bolster up," Santelli said. "All this is good. You know, listen to the original question we asked, ‘Is it worthwhile to save the banks?' Is there anything left to save, really?"
Co-host Larry Kudlow pointed out the trend - that as the government intervenes, more and more has gone wrong.
"All I know is since Fannie, since Freddie, since AIG, since Lehman, since Bear Stearns - all holy hell has broken out," Kudlow said. "If this is the solution, show me the problem. Somehow we have got to have a better way."
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The gov created this mess, and are running around spewing $$
February 23, 2009 - 15:53 ET by upcountrywaterHUD $2.4 TRILLION
These new regulations are among a series
of actions HUD has taken to increase homeownership in under-served
areas, particularly among minority Americans
What a great job the gov did, reinvesting
Now when the FDIC fails, what will happen?
When those of us that ACTUALLY saved money see it got POOF.
We shall have a depression.
The OAF, shall shine while organizing BREAD LINES.
pURPLe pINKy
Dow down 250
February 23, 2009 - 16:08 ET by bigtimerucw...
Yep...
Proof is in the pudding with how well all this is working... Dow down 250 today...the slide continues.
When are all the Hollywood
February 23, 2009 - 17:57 ET by Hunter12When are all the Hollywood bigshots and Richard Branson-types that backed this Messiah going to start putting their money where their mouths are and start showing that they really believe that these touted ideas are actually going to work? I think a feature on the nightly news of Brian Williams or Katie Couric buying $50K or $100K of Ford or GM stock and locking it away in some escrow account for ten years would go a long way to show the people that they convinced to vote for the One that they too really believe. Otherwise, it's just lip service and they really think like the rest of us that these plans are throwing any chance of recovery down the garbage chute.
"An appeaser is one who feeds a crocodile, hoping it will eat him last." - Sir Winston Churchill
I wish Soros and Moore and the whole darn lot of them
February 23, 2009 - 20:16 ET by Cape Conservativehad put their $$$ with Madoff! That would have been poetic justice!
It is no dishonor to be in a minority in the cause of liberty and virtue. ~ Sam Adams
CC... I've had the same
February 23, 2009 - 20:24 ET by bigtimerCC...
I've had the same thoughts along those lines.
Hunter12
February 23, 2009 - 20:20 ET by dborschjr68I was wondering that same thing today. When will all these wealthy super rich liberals show us the money? When, indeed?
"Liberate tutume ex inferis, liberal puppets." Me.
bt - the only time the Dow went up was back when
February 23, 2009 - 20:20 ET by Cape ConservativePresident Bush was still in office and the House had turned DOWN the first attempt to cram this financial bailout down our throats.
Since then it's been down down down...bye bye 401k, so long any chance of seeing our investment accounts ever regain their early 2008 status in our lifetime.
Such a great 'change' huh!
It is no dishonor to be in a minority in the cause of liberty and virtue. ~ Sam Adams
Santelli is right
February 23, 2009 - 16:11 ET by ekslibOur economy is sinking like a ship that hit an iceberg.
In response to the catastrophe, the Democrats are lowering most of the available lifeboats in order to fill them with ice floes which they will spread on the ship's decks.
What's Obama's explanation?
Obama explains that "placing ice floes on the deck will increase the ship's buoyancy, because every scientist knows that ice floats."
Change we can believe will get us out of this mess
February 23, 2009 - 16:17 ET by ekslibCredit to the creditworthy.
More Blood On Wall Street
February 23, 2009 - 16:11 ET by CaringwhiteguyAnother awful day on Wall Street. Another 250+ DJIA points gone, as the Obama Administration holds more made-for-TV media events about the economy.
It won't be long before many more Americans capitulate to these fear tactics (and in capitulating throw themselves prostrate at the mercy of the Government). And sorry to say friends, that's the Obama strategy. Remember Rahm Emanuel's words about using crises to implement their agenda.
Meanwhile, "Obama Pledges $900 Million to Rebuild Gaza"
February 23, 2009 - 16:24 ET by Prester JohnWASHINGTON – The United States plans to offer more than $900 million to help rebuild Gaza after Israel's invasion and to strengthen the Western-backed Palestinian Authority, U.S. officials said on Monday.
The money, which needs U.S. congressional approval, will be distributed through U.N. and other bodies and not via the militant group Hamas, which rules Gaza, said one official.
"This money is for Gaza and to help strengthen the Palestinian Authority. It is not going to go to Hamas," said the official, who asked not to be named as Secretary of State Hillary Clinton planned to announce the funding at a donors' conference in Egypt next week.
http://www.newsmax.com/newsfront/obama_gaza_rebuilding/2009/02/23/184683.html
No better place to spend US taxpayer money, eh?
Holy waste of money, Batman!
Prester... I read about
February 23, 2009 - 16:31 ET by bigtimerPrester...
I read about this too.
Lovely isn't it?
The UN (and other bodies) will do the job, honestly, they will... crisp, clear and cleanly.
Yeah, right...and pigs fly.
Our tax dollars at work once again...for the enemy.
bt - our tax dollars at work again - in the enemies pockets!!!
February 23, 2009 - 20:22 ET by Cape ConservativeIt is no dishonor to be in a minority in the cause of liberty and virtue. ~ Sam Adams
Good...finally someone in
February 23, 2009 - 18:55 ET by RR GOPGood...finally someone in the press doing their job.
Where do they get the vast majority of journalists-turn-experts-in-economics and supposedly school-trained economists? Moscow University?
One of the 24% who thinks George W. Bush was a great President. One of the 89% who wants to bring back the stock and pillory.
We need MORE Santelli's!!!!! I hope he's just the first ;-)
February 23, 2009 - 20:23 ET by Cape ConservativeIt is no dishonor to be in a minority in the cause of liberty and virtue. ~ Sam Adams
thank you Santelli for
February 23, 2009 - 20:37 ET by JAJTthank you Santelli for having the guts to speak up.
I think there are other journalist like Santelli who is afraid to speak up, other than those on Fox, because of what happened to Joe the Plumber.
JAJT
→ JAJT
February 23, 2009 - 20:44 ET by Cool ArrowIf they're afraid to speak up, they're not like Santelli.
If they can't speak truth to power, what good are they?