We are well down a slippery slope of panic solutions that are just throwing taxpayer money at what appears to be ways to instill confidence, loosen inter-bank credit etc. Nothing seems to be working as fast as needed, and it appears that everyone is running for the hills. Obama is only human and in spite of the best of intentions has a formidable task just to fill his cabinet posts.
Today, Bank of America hit new lows – down over 90% in a year! I was in a waiting room a few years ago at Bank of Montreal and was reading about the history of VISA. What I took away from my quick read was that Bank of America (originally Bank of Italy) operated by Amadeo Giannini, emerged as a San Francisco institution when the owner recovered the bank’s hard assets out of the earthquake damaged building in a vegetable push cart, and then went down to Fisherman’s Wharf and set up a table in the open air, and began extending credit and resuming operations to help the city recover from the earthquake. The Company later went on to be a founder of the Visa card (BankAmericard).
Wouldn’t it be a shame if BAC is nationalized by the US Government as suggested by Sen. Chris Dodd – Bloomberg
Somewhere out there is another Amadeo Giannini, a man who can be trusted to get things moving without the government bailout, maybe running a small regional bank that in 25 years could be the world’s largest!