Republicans Call For Banks To Fail

By Justin Gardner | Related entries in Banks, McCain, Republicans

And so it begins…

“Close them down, get them out of business. If they’re dead, they ought to be buried,” Sen. Richard Shelby, the Ranking Republican on the banking committee, told ABC’s This Week. “We bury the small banks — we’ve got to bury some big ones, and send a strong message to the market.” He did not mention any banks by name, although he responded to a question about Citigroup by noting that “Citi’s always been a problem child.”

Former GOP presidential candidate John McCain told Fox News Sunday that he did not think President Obama “made the hard decision, and that is to let these banks fail.” He did not call for nationalization of troubled financial institutions, which many Republicans oppose, but said their assets should be sold. “Unfortunately, the shareholders and others will take a beating,” he said.

Can you imagine if Citigroup went under? Does anybody understand the ripple effect that would have on the world markets and lending in general? It would cripple confidence.

Look for “Let them fail! Let them fail!” to become the rallying cry on the right very soon…if it isn’t already.

And, in other news, Fox News is already suggesting that Obama’s presidency is a failure.

Good times.

This entry was posted on Monday, March 9th, 2009 and is filed under Banks, McCain, Republicans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

9 Responses to “Republicans Call For Banks To Fail”

  1. Snoop-Diggity-DANG-Dawg Says:

    Does anybody understand the ripple effect that would have on the world markets and lending in general?

    Yes, Justin. Actually, lots of people understand. They need to go under. And ‘yes’, it will be painful. They’ll go bankrupt, their remaining assets will be liquidated, and responsible, competent banks will take their place.

    The real damage is in endlessly propping-up the failed institutions on taxpayers’ backs. Can you say ‘AIG’?

    These incompetent losers are on their fourth bailout and they’re still failing. They’re proof that bailouts don’t work.

  2. ExiledIndependent Says:

    Agree with Snoop on this one. This was my position back in October. Protect the individual, not the bank. The banks have already failed. And yeah, it will most definitely be painful. But we’ve made it more painful now by dumping hundreds of billions of dollars into institutions that won’t survive anyway, unless they’re nationalized.

    How many times should the banks be able to go back to Congress for billions in bailout before someone says enough? Two? Ten?

  3. kranky kritter Says:

    I might be fine with letting them fail as long as our government gets to be first creditor, and gets all its money back when the assets get sold.

    And as long as the economic (and perhaps criminal) reckoning extends to all the companies that marketed CDOs and to the firms that gave them fraudulent AAA ratings.

    Although, anyone else out there (beside the predictable progressivist flacks) starting to get a little irritated by John “Born-again-hard-on” McCain? Remember when he wanted the campaign to stop so that the government could fix this? Now he’s Mr. laissez-faire?

  4. J. Harden Says:

    So far, I’ve got to give it to Obama & Geitner…the financial plan that they’ve unveiled is perfect!

    Peter Schiff (you know, the guy we were all praising, including Justin, for having perfectly predicted the crisis) has it right: The government needs to quit trying to help.

  5. Justin Gardner Says:

    I’ve since revised my opinion of Schiff after reading more about him and his predictions. Because not only has he been saying this stuff for a LONG time, he also said predicted that our currency was going to completely collapse. Obviously that’s a ridiculous notion given that it’s the preferred currency of the entire world.

    So yes, points for Schiff, but no praise.

  6. Trescml Says:

    I think the have two major banks (Citi, BoA and maybe others) fail at the same time would be catastrophic to the economy. I agree that the current course of action is the slow death version. I think we are going to have to take over the giants and split them into more manageable pieces.

  7. Snoop-Diggity-DANG-Dawg Says:

    It’s not ridiculous, Justin. There’s an awful lot of historical precedent for countries that print so much debt that it equals their GDP. Germany, Russia and Argentina, just to name a few.

    And ‘yes’ the dollar’s reserve currency status does reinforce its value, but there’s no reason why the dollar couldn’t lose its world reserve status. In fact, there’s been a lot of talk about a “Bretton Woods II” to reconsider that very point.

  8. Jim S Says:

    They didn’t learn from Lehman Brothers? Are they going to agree about further expansion of a social safety net when U-3 hits 15%+ and the average unemployed person is staying that way for over 15 months?

  9. ExiledIndependent Says:

    Kranky, agree with the McCain comment. He was first in line to vote for the Bush socialist TARP program, and in my mind he’s persona non grata when it comes to discussions of the economy. While the point he makes has some validity, the messenger has disqualified himself from the conversation.

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