One last thing-seen the banking news lately?

For all this talk of Obama’s supposed socialism, anyone notice that we’re using nearly $1 Trillion of OUR money to sure up private industry, effectively nationalizing the banks? All this being done under a Republican administration? Apparently corporate welfare is A-OK?


One Bank doing it right

The Washington Post is up with a cover story on a bank that kept to its classic lending rules and is doing just fine through this economic downturn. Turns out the local customers are doing well too.

Banks in Crisis

ThinkPOP is on the move this morning, but I didn’t want to wait to post on the financial crisis spreading through the banking industry. Over the course of the weekend we learned Merril Lynch will sell itself for $50 billion ( 1/2 of what it was worth last year) Lehman is filing Chapter 11 after it was unable to find a buyer, Washington Mutual has lost some $50 billion of value, and AIG is seeking a bridge loan from the Federal Reserve as it braces for a devaluation from the street. The markets in Europe and Asia are already down, and US stocks are set to tumble.

The federal reserve and treasury finally drew the line on further rescue measures apparently only willing to rial tax-payer dollars on Bear Sterns, Fannie Mae and Freddie Mac.

I’m not an economist or an expert on the financial markets, but from a layman’s point of view this seems like the kind of brutal, rapid correction the market needed to determine how deep the subprime lending crisis goes.

I am desperate to hear from Senators Obama and McCain on what actions they see as necessary to bridge this disaster. Their reactions to this domestic financial crisis will be as telling as their reactions to the Russian invasion of Georgia.