Agree very much.
Re: "Naturally, as pessimists would say, the same people are running the show, so ... are they all bought? My answer to this is yes, the same people are there. However, this does not mean necessary reforms won't be implemented as the administration and the public anger keep pushing for it. Simply put, they have no choice."
Yes. Should the fireman douse the flames, or rescue the baby? One thing at a time.
The riddle of who should be used to start making things right reminds me of what many firms do when they find their security has been compromised by a hacker: they hire the hacker. They hire someone who knows how to game the rules, because that's the shortest route to solving the problem.
Yes, it's right to say they're captives of the Wall Street mindset: they see things a certain way. But where in heaven will a new administration find qualified people, knowledgeable people except from the best talent pool in the country?
About the solutions... Volker said, "... I don't know."
"So I think we have a problem which is not an ordinary business cycle problem. It is much more difficult to get out of and it has shaken the foundations of our financial institutions. The system is broken. I'm not going to linger over what to do about it. It is very difficult. It is going to take a lot of money and a lot of losses in the banking system. It is not unique to the United States. It is probably worse in the UK and it is just about as bad in Europe and it has infected other economies as well... "
shockedinvestor.blogspot.com
The new administration must be the moral compass for Wall Street expatriates, and over the coming years, begin making the system right again.
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From the sixties:
"...There's battle lines being drawn
Nobody's right if everybody's wrong..."
Right now, everybody's wrong: everybody else says so. There's anger, finger-pointing, moral hazard and evasion of responsibility by all concerned. So nobody's right.
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And I agree with you: there was no "plot". It was a series of cumulative sins and errors, by politicians, by the financial community, by bad actors, good actors, regulators and gatekeepers, mixed with prevailing psychology: that created this disaster.
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Looking forward to the next BIS report. That's another ticking bomb: derivatives.
Jim |
