http://usawatchdog.com/default-option/ Connecting the Dots to Give You A Clear Picture of What’s Really Going On Wed, 16 May 2012 16:48:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://usawatchdog.com/default-option/#comment-59809 Fix The Banks! « Jim Sinclair's Mineset Wed, 31 Aug 2011 19:09:32 +0000 http://usawatchdog.com/?p=30#comment-59809 [...] In January of 2009, I wrote a piece called “Default Option.”  I had the crazy idea that the big banks should be taken into receivership.  Yes, shareholders and bond holders would have been wiped out.  Tough—that’s investing.  The only people you would have to protect are the depositors and, at the time, it would have cost $6 trillion.  I said, “Letting those banks take the hit for their ill-advised, reckless investments based on greed will do many things.  Here are just a few.  Letting the reckless banks fail will limit taxpayer exposure, preserve our capital and our credit rating as a country. Bank failure will wash bad debt out of the system once and for all and protect the dollar from free fall.  Finally, I think in the end it will be cheaper and more effective than what has and will be done in the future to “fix” the credit crisis.”   (Click here to read the original Default Option post.)  [...] [...] In January of 2009, I wrote a piece called “Default Option.”  I had the crazy idea that the big banks should be taken into receivership.  Yes, shareholders and bond holders would have been wiped out.  Tough—that’s investing.  The only people you would have to protect are the depositors and, at the time, it would have cost $6 trillion.  I said, “Letting those banks take the hit for their ill-advised, reckless investments based on greed will do many things.  Here are just a few.  Letting the reckless banks fail will limit taxpayer exposure, preserve our capital and our credit rating as a country. Bank failure will wash bad debt out of the system once and for all and protect the dollar from free fall.  Finally, I think in the end it will be cheaper and more effective than what has and will be done in the future to “fix” the credit crisis.”   (Click here to read the original Default Option post.)  [...]

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