Comments on: Trying to Come to Grips with the Baking Crisis http://www.wholesomereading.com/2009/03/07/trying-to-come-to-grips-with-the-baking-crisis/ Musings on culture and politics by baseball writer Steven Goldman Sat, 19 May 2012 10:27:41 +0000 http://wordpress.org/?v=2.6.3 By: Jason http://www.wholesomereading.com/2009/03/07/trying-to-come-to-grips-with-the-baking-crisis/#comment-659 Jason Fri, 13 Mar 2009 23:53:23 +0000 http://www.wholesomereading.com/?p=428#comment-659 A baking crisis would be very sad for the bread industry. A baking crisis would be very sad for the bread industry.

]]> By: Nick http://www.wholesomereading.com/2009/03/07/trying-to-come-to-grips-with-the-baking-crisis/#comment-658 Nick Fri, 13 Mar 2009 22:30:07 +0000 http://www.wholesomereading.com/?p=428#comment-658 This is a good summary of the various meanings of 'nationalization': http://seekingalpha.com/article/125053-bank-nationalization-5-different-meanings This is a good summary of the various meanings of ‘nationalization’:
http://seekingalpha.com/article/125053-bank-nationalization-5-different-meanings

]]> By: Mike K http://www.wholesomereading.com/2009/03/07/trying-to-come-to-grips-with-the-baking-crisis/#comment-652 Mike K Mon, 09 Mar 2009 19:36:35 +0000 http://www.wholesomereading.com/?p=428#comment-652 I would have saved myself the typing if I knew Nate was going to address this: http://www.fivethirtyeight.com/2009/03/do-americans-want-to-nationalize-banks.html I would have saved myself the typing if I knew Nate was going to address this: http://www.fivethirtyeight.com/2009/03/do-americans-want-to-nationalize-banks.html

]]> By: George http://www.wholesomereading.com/2009/03/07/trying-to-come-to-grips-with-the-baking-crisis/#comment-651 George Mon, 09 Mar 2009 17:34:01 +0000 http://www.wholesomereading.com/?p=428#comment-651 I think when Corey Booker was on Bill Maher this week he said that Newark was trying something like plan 1. Oh you who get to read the Star-Ledger itself, is this true? Is it working? I was having trouble Googling any helpful stories. I think when Corey Booker was on Bill Maher this week he said that Newark was trying something like plan 1. Oh you who get to read the Star-Ledger itself, is this true? Is it working? I was having trouble Googling any helpful stories.

]]> By: Mike K http://www.wholesomereading.com/2009/03/07/trying-to-come-to-grips-with-the-baking-crisis/#comment-643 Mike K Sun, 08 Mar 2009 20:56:50 +0000 http://www.wholesomereading.com/?p=428#comment-643 Well, I think I can tell you why option 1 won't work (bear in mind I'm relying on Krugman & Planet Money inform my thinking): creating new banks won't help. The issue is not that there aren't banks out there that could lend money, it's that if these cancerous old banks fail, they quite possibly take the global economy down with them. The FDIC can cover normal people's savings (though at an enormous cost to the taxpayers), but it won't help the thousands of business with over $100k in savings. As for #2, isn't that essentially what the Geithner plan is right now, albeit with buying stock instead of "lending" money? We are pumping money into the banks already. Why would it make a difference if it was a "loan" versus an ownership stake? Well, I think I can tell you why option 1 won’t work (bear in mind I’m relying on Krugman & Planet Money inform my thinking): creating new banks won’t help. The issue is not that there aren’t banks out there that could lend money, it’s that if these cancerous old banks fail, they quite possibly take the global economy down with them. The FDIC can cover normal people’s savings (though at an enormous cost to the taxpayers), but it won’t help the thousands of business with over $100k in savings.

As for #2, isn’t that essentially what the Geithner plan is right now, albeit with buying stock instead of “lending” money? We are pumping money into the banks already. Why would it make a difference if it was a “loan” versus an ownership stake?

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