Let the banks fail, end income tax - that is the real fix.

[the other one]

Seriously.

Transfer all lending power directly to the treasury. If you want a loan, you get it from the treasury.

The gov't. will get its operating income from interest paid to it on loans.

If the gov't. needs to pump money into the economy it can do so by paying for public works.

Save the $700 billion to rebuild the the social safety net. It won't cost nearly as much.

[Cessna Invesco Palin]

1. You do realize that when an FDIC insured bank fails...

...you are the one who picks up the tab.

[the other one]

6. And how would that be different if the gov't picks up the tab?

Its the same thing without the bailout.

[Cessna Invesco Palin]

9. No it is not.

With the bailout, the government is picking up the tab with the intention of trying to keep these banks in business.

FDIC is insurance for the deposit holder, not the bank. It kicks in when the bank has already failed. You DO NOT want the FDIC bailing out tens if not hundreds of smaller banks. Very, very bad.

[RoyGBiv]

2. Huh ...

And just five minutes ago I read another post talking about how the bill in Congress now gives too much power to the Treasury.

You might want to go talk this proposal over with that school of thought first and see what comes of it.

[the other one]

4. Treasury should have all the power.

The federal reserve should be abolished; there is no reason that the american people should pay interest on our deficit.

JFK actually tried this is 1963. He ordered that US Treasury Notes replace Federal Reserve Notes. These notes are still around available to collectors. JFK was dead six months later, and one of the first acts of LBJ was to give the FED back its monetary power. (sorry about the lack of footnotes)

[RoyGBiv]

7. That's fine ...

I'm just saying ... well, implying that I wish those who express sentiments about wanting the banks to fail would get their ideology straight.

All this running around screaming "Let it Fail! Let it Burn!" is not doing anyone any good, and I think it is illustrative that among those screaming that, we've got one group who thinks the problem with this bill is it gives the Treasury too much power and another that thinks it doesn't give enough.

[billyoc]

3. Can we have the OTHER other one?

How is the money getting INTO the treasury, Mr. LaRouche?

[the other one]

5. How does it come into existence in the first place?

Because banks are authorized by the federal reserve under the fractional reserve system to create loans OUT OF THIN AIR!

Abolish the banks, abolish the fed, and let the treasury create its own money out of thin air. At least it will belong to the people and not to private industry.

[scisyhp1]

8. Excellent idea. Banking and credit are too important to leave them

to for profit entities. That's about 15% savings for all the clients
rigth there just by eliminating profits. Any savings due to better
eficiency of a governement-run enterprize (i.e. due to regulatory
ban on outrageous compensation for executives) will be just gravy
on top of that.

[Thothmes]

10. I am sure this government run enterprise would

operate as efficiently as the DOD or FEMA. Be able to hand unexpected growth like the VA. Manage money as well as the DOI manages the royalty program for the Native Americans. No thinks.