There is talk by the Federal Reserve, the U.S. Treasury, the U.S. Congress and bankers about creating a "bad bank" and let the government use the next tranche of the bailout money to take the losses from the banks and put them in this bad bank.

First of all, why anyone would want to create something "bad" is beyond a rational person's comprehension. Why not create something "good." Why not take the second half of the TARP money and create a "good bank,"one that is solvent, a bank that everyone can trust, a bank for the future not the past. If we create a "bad bank," there is no future. The money is just wasted again.

Continue reading Create a 'good bank,' not a 'bad bank'

Create a 'good bank,' not a 'bad bank' originally appeared on BloggingStocks on Mon, 26 Jan 2009 15:03:00 EST. Please see our terms for use of feeds.