Friday, April 30, 2010

Beware Weasel-Wording in the WSJ

A little clarification of the bank-reform issue is always useful.

Ticker makes the point very well, commenting on a WSJ editorial which conflates "complex financial instruments" and basic lending.

Notice the weasel in here. One part (trading complex financial instruments) should be

diverted to hedge funds and other unregulated - and free-to-fail, no-backstopped firms.

The other part (lending) will always be done by banks - you have one on the corner, or a credit union, that will write you a loan, yes?

I'm certain that the editorial-writer just kinda made a mistake, no?

It could not be that the WSJ editorialist is another version of the GM Chairman. No. Of course not.

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