Eric RauchwayMar 12, 2023
Spot the difference!
One needs a bailout and the other should be discharged in bankruptcy. 🧐
@histodons
#histodons
@politicalscience
Show threadPatrick McCray

@rauchway @histodons @politicalscience

Can we put Summers and Kissinger on the same rocket and launch it into the sun?

Mar 12, 2023 at 9:07pmWeb
Show threadAswath RaoMar 13, 2023
@LeapingRobot
Yes, but... Obama listened to him during a similar crisis. Today despite Yellen's claim that we will not repeat the same mistake, late report suggests that tomorrow officials will announce that all deposits are intact. Dems, what Dems
@rauchway @histodons @politicalscience
Show threadMark SaltveitMar 13, 2023

@aswath @LeapingRobot @rauchway @histodons @politicalscience What I've read is that depositors will be protected but shareholders and investors will lose out - with no taxpayer funds used, just industry fees.

What part of that don't you like?

Show threadAswath RaoMar 13, 2023
@taoish @LeapingRobot @rauchway @histodons @politicalscience I will quickly admit it is more a visceral reaction. It looks like this is a reactive step bc we are threatened a more serious calamity will strike if no action is taken; which is another way of saying "I am more imp than others". Then I read in WaPo that many experts are ambivalent as well. But one thing is clear: as Fed rate was going up, they should have taken protective step and they didn't.
Show threadAswath RaoMar 13, 2023
@taoish @LeapingRobot @rauchway @histodons @politicalscience Clearly this industry needs more regulation; but would these depositors turn around at a later date and support more regulation. NO. Now let us take a look at college education loans. They also should have seen the their loan building up due to compounding. They didn't; I would say couldn't. Yes Biden has taken a proactive step but i being blocked. But the diff is steps taken is vastly different.
Show threadAswath RaoMar 13, 2023
@taoish @LeapingRobot @rauchway @histodons @politicalscience And this expert walking around stating bankruptcy is the answer is a bit much.
Show threadMark SaltveitMar 13, 2023

@aswath @LeapingRobot @rauchway @histodons @politicalscience
I'm not supporting Larry Summers.

I did see someone say that students are blocked by law from using bankruptcy laws to get out from under school loan debt. I'm not up to speed on this issue, but if that's true it should end immediately. If bankruptcy is good enough for businesses and their highly-paid executives, it's certainly good enough for impoverished students.

Show threadAswath RaoMar 13, 2023
@taoish @LeapingRobot @rauchway @histodons @politicalscience I just now read the op-ed by Warren. I am in good company. https://www.nytimes.com/2023/03/13/opinion/elizabeth-warren-silicon-valley-bank.html?unlocked_article_code=kyxKTSRbgb_XIfIEpL6zOgMrUHUirEpFE9X1b5vaM6NphXagwmvrd2N_znm4cE5ikFGGyDiAWW7VvTKAlO5M-pxr3ZhmGEJDzuvfH-JLZX_GV0ruNJaZ_Qhmtqng3573st89nVGRofp_5QJuHaHcCwq9885bbSJAVgpJqq5AEDjlw9X1y0QbYcnnhM-ZXgg7sq8ZY6OD9pM9ZiWQ6_5_XTz5xlJe_BJroYdrq-PknazbEsXQfT_yJcRLAhL4_j9xOvf4kfe6hacRAqvNgqAPUJ5joNfcry6uTizkhcUPMESeGSOhGVS6HEUuXHc5LxNEpB_0zJg09PyalAMZkVnHK9VEFVdbNTpreBMmFIkc&smid=url-share
Opinion | Elizabeth Warren: We Can Prevent More Bank Failures

The recent bank failures were entirely avoidable.

The New York Times