27 OCT 2010, Wednesday

• This very simple and pointed 32 second question during recent Congressional Hearings on the Massive Mortgage Mess completely captures the entire essence of the current situation.
• It's basically between:  1) the rule of law or 2) save the banks at any and all costs.  
• Rule of law should win hands down!  
• Banks are a business.  Period!  As such, it is in the bank's interest to conduct it's business wisely under sound, prudent and legal principles.  To do otherwise would, reasonably, result in the failure of the business / bank.  Businesses fail all the time and go to bankruptcy court to settle...so what?  Debts are settled and cleared out of the system.  Done...move right along...nothing to see here folks.
• Let the bad bank fail and a better one will probably arrive on scene if there is demand for the service...capitalism.
• No bailouts for banks!  How many restaurant or sporting goods stores have you ever seen bailed out?  None!  Because, like banks, they are like the old Lay's Potato Chip commercials..."Go ahead.  We'll make more."   
• Banks which made bad (and sloppy) loans to people who the banks knew couldn't possibly pay the loan back should fail.  And, people who took out loans they knew they couldn't reasonably pay back should be foreclosed upon under due legal process.
• As long as the Federal Reserve and CONgress continue to save the banks (ahem...campaign contributers) at any and all costs, the debts will never be cleared and it will take years for the conclusion of this depressed economy.
• Don't believe me?  Look at the mess Japan has been in since 1989.  They did what Ben Bernanke is trying now.  He just thinks that he's smarter than them.
• God Bless us all!