The government’s revised plan to relieve banks of toxic assets is the subject of an article in today’s New York Times.
The plan is to allow private investors, other than banks, to buy up the toxic assets. The government would set a floor value to help overcome any reluctance investors might have in purchasing the trouble assets.
There’s a lot pressure riding on this revised plan. Economists say that without a bailout plan that works, no stimulus plan is likely to have a long term effect.
Perhaps as informative as the article are the 116 comments that the readers have left so far.
Once again, we’re seeing consumer trust of the mega banks and other banks as well go down the tubes.
The phrase “ponzi scheme” is a theme that runs through the comments, as many of the readers feel that this private funded program will simply lead to more problems.
Readers are also commenting on being disturbed at the apparent lack of trust between banks that is resulting in the hoarding of capital that is creating more problems in the international financial system.
In a simple social media monitoring exercise, here are just a few of the comments from readers of the NY Times article:
“The reason there is no trust is because there is no honesty.”
— Bob, San Diego
“Another ponzie scheme to privatize profits and socialize losses.”
— btb, MA
There is no trust because the financial system has finally been exposed for what it is: A giant Ponzi-Scheme with nothing to back it up and profits being made out of the misery and the death of other people.
— Alexandra, Washington D.C.
“Why not make it mandatory that the banking CEO’s and Wall St hot shots get the toxic assests as part of their bonus packet. Then we may see what their potential value might be.”
— Iris Staub, Massachusetts
Maybe it is time for Economy courses at the Top Universities and Business Schools to make Adam Smith required reading…not the Wealth of Nations, but The Theory of Moral Sentiments. Can the capitalist system continue if all the banks are dishonest? Is honesty a sentiment?
— DB, Amazonia, Brazil
I don’t know why there aren’t a million people on the mall right now explaining to our elected officials that not another penny of tax payer money should be going to prop up mega banks. Our fore fathers would have done it.
If we don’t do it now we’ll have to do it later.
Let the ATM’s not work for a few days.
— Davhud, Atlanta, GA
–Kevin McIntosh
Kevin McIntosh develops creative branding ideas and social media strategies to help community banks differentiate from their competition.
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