US ECONOMY: Federal Bailout Success or Failure?

[Rare_Commodity]

I was quite impressed with Bloomberg for coming correct with some hard facts and figures about the bailout.
www.bloomberg.com/data-visualization/federal-reserve-emergency-lending

"Bank of America Corp., which got two rounds of U.S. Treasury Department capital injections totaling $45 billion to stay afloat during the credit crisis, borrowed twice that amount in secret from the Federal Reserve. On Feb. 26, 2009, the Charlotte, North Carolina-based bank held $78 billion of loans from the Fed's Term Auction Facility, $8.65 billion from the Primary Dealer Credit Facility, $4.75 billion from the Term Securities Lending Facility. The financing helped bolster the largest U.S. bank by assets as investors worried its 2008 acquisitions of Merrill Lynch & Co. and Countrywide Financial Corp. might lead to nationalization. "

For the most part I respected Warren Buffet's statement about taxing the rich, however, I find it an unwise business decision to invest millions into BOA after they already received federal bailout money. Your thoughts in general about the bailout or the economy?

[Kyng of JDs]

I am a firm believer in market theory. I say let the banks "fail." Realistically, the banks will merge/buyout each other, creating superbanks. For every "superbank" 10 regional or state banks will emerge. I foster the belief that smaller local banks provide better products and cheaper money overall to their customers. Indeed, we will have to suffer a bit to get there. But, the end product will justify the means.

[nyunupe]

Glass- Steagal act is the foundation for bailouts.

It had to happen. Feds to banks are moths to light. It's a fact. Whether it's right or wrong is....not relevant. Will banks loan as a result of the bailout is the question.

[nyunupe]

Sept 2, 2011 10:45:12 GMT -5 Kyng of JDs said:

I am a firm believer in market theory. I say let the banks "fail." Realistically, the banks will merge/buyout each other, creating superbanks. For every "superbank" 10 regional or state banks will emerge. I foster the belief that smaller local banks provide better products and cheaper money overall to their customers. Indeed, we will have to suffer a bit to get there. But, the end product will justify the means.

Small banks and the SBA is a myth in today's knowledge economy. Small banks are sooooo 20th century...