Monday, June 01, 2009

Ritholtz Makes It Plain About the Banks

Barry doesn't dance. Refreshing, no?

About the BankBailout:

So far, the Obama administration approach to bailouts has been to keep running Bush Economic term III. They have been far too kind (genteel even) showering taxpayer monies on the incompetents and fools who drove their firms over the abyss. Indeed, its all but impossible to see where the largesse of the Bush bailout policies ends and the Obama bailout policies begins.

If today were November 2012, I would not vote for this team. As far as the banking sector is concerned, this gang is no different than the knaves and dolts who came before. It is more of the same irresponsible, expensive and reckless policy that preceded them.

That anyone is even debating pulling Derivatives out of the shadow banking system and putting them into a regulated derivatives exchange — transparent, reserved for, counter-party guaranteed, exchange supervised – is embarrassing for our nation, its corporate and political leaders.

It is, in fact, astounding that there is a debate over the deriviatives situation.

1 comment:

J .Strupp said...

...and now that the banking system has effectively (for them) implemented creative accounting measures to appear on the up-and-up again, you can pretty much be certain that the much needed financial reforms (like repealing much of the deregulatory measures stemming from the 80's) will not be acheived.

I have no doubt that this crisis will play out for years, if not decades, given our current path. We still think the world hasn't fundamentally changed. How wrong we are.