Comments on: Why is Treasury denying its TBTF guarantee? A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: csodak Sat, 06 Mar 2010 22:28:53 +0000 This last financial debacle has completely destroyed my and many other Americans respect for capitalism.

There is a bank robber in Denver Colorado named the Limping Latex Bandit who has over the past few months robbed multiple banks and I find myself CHEERING him on! I have decided to join the unlimited number of American citizens who appear to have an endless tolerance for individuals or institutions to steal from them.

I wish anyone the best of luck (as long as no one is physically harmed) who decides to go into any financial institution and take as much us treasury currency as they feel they have a right or need of and hand back to that institution a piece of paper with the sum that you’ve rightfully received written on it…after all, its all fungible.

By: q_is_too_short Sat, 06 Mar 2010 18:33:00 +0000 why do you think that the treasury has the authority to guarantee an institution with a private charter?

By: CEZMI-DISPINAR Fri, 05 Mar 2010 22:24:06 +0000 Hey Felix, please check it out:
Historically, TBTF was a misnomer, says Prof. Bill Black. “In this crisis, however, regulators have twisted the term into immunity”, so Black in a must-read essay in naked capitalism.

By: dWj Fri, 05 Mar 2010 18:05:03 +0000 > But there’s only one reason why the government should carefully regulate a set of companies so as to ensure that they don’t fail. And we all know what that reason is: if they were ever to fail, the government would be forced to step in and bail them out.

I wish there more general agreement on this.

Incidentally, the paragraph following the one I pulled makes a lot more sense when it’s clear that you’ve said exactly the opposite of what you meant. It’s false for Allison to disagree that TBTF banks “benefit from the assumption that the government would step in to prevent their failure” — as he did, according to the article.

I can imagine people wanting to pretend that we’re not going to backstop these large institutions, but I think there’s more upside than downside to adding clarity as to who we’re going to backstop and how, rather than make everyone who disbelieves false assurances guess who exactly is allowed to fail how badly and in what way.