Of course the whole notion of repairing bank balance sheet is a lie and misdirection. The balance sheets we should want to see repaired are household balance sheets. Banks have failed us profoundly. We want them reorganized, not repaired. A world in which the banks are all fixed but households are still broken is worse than what we have right now. Too-big-to-fail banks restored to health are too-big-to-fail banks restored to power. The idea that fixing legacy banks is prerequisite to fixing the broad economy is a lie perpetrated by legacy bankers.
He said that these businesses, the proprietary and market-making arms on the 18th and 19th floors of Madoff Securities, were designed to lure investors in, especially highly placed figures in society, and to fool the SEC into thinking that he had a large and impressive galaxy of businesses.
This applies to Goldman, Morgan, ML, Citi, etc. too. The only difference? The taxpayer is responsible for the losses and nobody goes to jail for fraud.
Wow. The Fed is pumping the next trillion of funny money into the pipes (more en route). Some thoughts:
The Fed's move is a gutsy sprint in the race to the bottom for global currencies. Mercantilist countries like China, Japan, Taiwan, Germany, etc. are going to get slammed even more than they have already. They are TOAST.
The US is aggressively trying to inflate its way out of a deflationary depression and massive debt. The dollar has to crump. The cost of imports zoom, slamming stretched consumers.
Past the shelf life? Yves has a good example of why:
What gets me so worked up is The Observer's total lack of journalistic integrity in this case. The Fourth Estate has a responsibility to the general public to report the truth. To the extent it can enrich investors, corporate executives have a responsibility to obfuscate the truth. Selling 20 column inches on the front page directly to BofA's PR dept. would be less harmful than what was done here. Calling this piece an "interview" suggests the reporters did their duty to ask tough questions and filter fact from corporate fiction. But they did nothing of the sort. The result is that readers are badly misled.
The Iowa Republican raised eyebrows with his comments Monday that the executives -- under fire for passing out big bonuses even as they were taking a taxpayer bailout -- perhaps should "resign or go commit suicide."