tag:blogger.com,1999:blog-1948420587779787298.post4772777623668998007..comments2023-06-16T05:25:55.741-07:00Comments on Elliptica: This wasn't what I wantedLynethttp://www.blogger.com/profile/06357023675142716573noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-1948420587779787298.post-17798847158478519652008-10-05T14:39:00.000-07:002008-10-05T14:39:00.000-07:00Mind you, IANAE, either.The FDIC protects people's...Mind you, IANAE, either.<BR/><BR/>The FDIC protects people's savings. It insured up to $100,000 per person; the bailout bill just increased it to $250,000. It helps private savers, but it doesn't do much to prop up the credit market. If your net worth is $100,000, you don't need a personal loan; any business loan you might need is likely to be far in excess of any reasonable cap.<BR/><BR/>In addition, banks often borrow from one another to fund their investments. These investments are entirely unprotected. Even the $250,000 doesn't apply, since these aren't bank accounts, but ordinary loans.Alon Levyhttps://www.blogger.com/profile/12195377309045184452noreply@blogger.comtag:blogger.com,1999:blog-1948420587779787298.post-87431714478189245342008-10-05T07:17:00.000-07:002008-10-05T07:17:00.000-07:00I like the fact that you're trying to think of alt...I like the fact that you're trying to think of alternatives. IANAE either, but I agree with the principle of trying to protect those sectors of the economy that are still functioning soundly from the fallout of the chaos that needs to be repaired.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1948420587779787298.post-36163979154154973782008-10-04T12:19:00.000-07:002008-10-04T12:19:00.000-07:00What I'm asking, though, is whether there's are al...What I'm asking, though, is whether there's are alternative ways to make the private credit market <I>less</I> scared. I don't know enough about what the government is allowed to do to know whether that's the case, but I'm sort of thinking maybe the government could insure (i.e. effectively promise to bail out) those types of lending that <I>are</I> mostly secure. The FDIC plays a role vaguely along those lines, right? (She says, understanding almost nothing of the matter . . .) So increasing the FDIC limit is one alternative that is already being put into practice. Are there others?Lynethttps://www.blogger.com/profile/06357023675142716573noreply@blogger.comtag:blogger.com,1999:blog-1948420587779787298.post-70316458219133150522008-10-04T10:18:00.000-07:002008-10-04T10:18:00.000-07:00Is bailing out banks and investors the only way to...<I>Is bailing out banks and investors the only way to make credit available out there?</I><BR/><BR/>Pretty much... when the federal government failed to bail out Lehman Brothers, the private credit market got so scared that it just stopped lending to anyone except the federal government. The federal government could borrow for 0.05% interest, the private sector for 7-8%.Alon Levyhttps://www.blogger.com/profile/12195377309045184452noreply@blogger.com