Robert Reich on Too Big to Fail: Why The Big Banks Should Be Broken Up, But Why The White House and Congress Don't Want To "What to do? Two ideas are floating around Washington, but only one is supported by the Treasury and the White House. Unfortunately, it's the wrong one. "
4 comments:
Reich's article and the current debate is simply more distraction to keep from uncovering the painful truth.
Paulson, Geithner, Bernanke, Congress, and Bush simply handed over the keys to the US Treasury and Federal Reserve to Wall Street last year and basically said.....
Whatever you need. No problem, no questions asked.
No new capital requirements
No new transparency
No new salary/bonus restrictions
No new regulations
No too big to fail
No 20 to 1 levering
No new anything.
What a sad joke!
It's clear to many that the financial wizards of Wall Street were all guilty of multiple counts of fraud related to Mortgage Back Securities (and their associated CDOs) and until investigated and prosecuted nothing will change.
Reich, Krugman and every other pure economist out there simply has their head up their ass. They either cannot (or will not) admit to the massive fraud executed first by Wall Street (based on bundling and selling repacked worthless residential mortgages, that they knew full well were garbage) followed up by an equivalent fraud perpetrated by the Federal Government on the taxpayers of this country, when they bailed out Wall Street and got nothing in return. Oh wait, we own 80% of AIG....fantastic.
Have these economists never heard of or read Professor William Black on this subject. I doubt it. They simply refuse to address his concepts directly as though they are radioactive. Perhaps if the pure economists just ignore him, he will go away, and they won't have to admit that the largest financial crime in history went down right under their noses.
Post theft, what exactly did the Treaury and Federal Reserve buy? Has anyone seen a full accounting of the TARP assets? How about a partial accounting?
You tell me, who has been the beneficiary of the largest government bailout in history...
Wall Street or Main Street?
Let's see....
Less than 9 months after the largest financial meltdown since the Great Depression (about 80 years) we have...
On the one hand - unemployment skyrocketing beyond 10% (I won't even begin to say why that's a low figure).
On the other hand....
We currently have record bonuses on Wall Street.
That's right.....RECORD BONUSES
These guys should be making license plates and instead they are making record bonuses. You couldn't make it up if you tried.
I forgot, right,,,,,
that's the change I can believe in.
Don't hold your breath waiting for the Federal Government to take down, I mean't break up Goldman Sachs or JP Morgan.
TT
Wasn't sure whether to post this under the flu post or not so I'll put it in both places.
For those readers who wish to avail themselves of some insight from Professor William Black, please follow the link below.
I am sure you will find his very measured and professional discourse far more palatable than mine.
http://www.askbutwhy.com/2009/09/william-k-black-deregulation-and.html
TT
He mentions Brooksley Born. I hadn't heard of her before watching last week's Frontline, which I highly recommend:
http://www.pbs.org/wgbh/pages/frontline/warning/
Ms. Born was the only one in the room circa 1999 who didn't drink the kool-aid. Summers, Rubin, Greenspan and Geithner all set us on the path of financial armageddon.
They argued that we should trust Wall Street so we don't need Glass-Steagall anymore. She tried to warn them but they were the smartest guys in the room you know. What's the big problem with hundreds of trillions of dollars worth of unregulated financial instruments.
Unfortunately, we now know the answer to that question.
It is unbelievable that these are the people running the show now.
Big protests in Chicago at the Bankers convention. I think as the truth starts coming out, people are getting really pissed off to see how first the bankers stole their money and then how the government stole their money to cover for the Bankers.
TT
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