Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (508721)	8/28/2009 6:06:21 PM
From: tejek	Respond to of 1577111

How so? I don't feel like the underlying problems have been fixed. I think we've bought a lot of time to fix them, but I feel like we could've started earlier... I agree. I don't think many of the underlying problems have been fixed. I think what is discussed below needs to be done and I worry that Obama and Congress will not have the resolve to do the dirty work necessary to make banking reform and regulation happen. Having said that, I do think that the Obama team has contained the economic crisis if not with complete perfection.....then, with near perfection. Given where we were six months ago, we've come a long way. "Regulators' concerns are twofold: that consumers will wind up with fewer choices for services and that big banks will assume they always have the government's backing if things go wrong. That presumed guarantee means large companies could return to the risky behavior that led to the crisis if they figure federal officials will clean up their mess. This problem, known as "moral hazard," is partly why government officials are keeping a tight rein on bailed-out banks -- monitoring executive pay, reviewing sales of major divisions -- and it is driving the Obama administration's efforts to create a new regulatory system to prevent another crisis. That plan would impose higher capital standards on large institutions and empower the government to take over a wide range of troubled financial firms to wind down their businesses in an orderly way." But I hardly think the process is done by a long shot. I think we have pulled back from the cliff but I don't think we are out of the woods. There are a number of minefields ahead and the next year will not be easy. A lot of the actions we've taken have enriched people who are already rich, like the execs at JPMorgan, Goldman, Bank of America, and big stockholders... We allowed too much consolidation and reopened the bonus spigot. It's not OK. Ultimately, it's probably terrific for me and the work I do, but it's still not OK. I agree but I don't think there were a lot choices in this mess. The LEH collapse reverberated around the world.......we couldn't afford more repercussions developing with some of the big banks that were in trouble.......like Wachovia. From what I've read, the best we could do was pair up weak banks with the stronger banks and then watch to make sure abuses were kept to a minimum. Its annoying that some of the same people who helped create the crisis benefited but even that was kept to a minimum. The CEO at Citi was replaced, the CEO at BAC has had his duties reduced and other personnel changes have occurred at other banks. Its an imperfect world.......unfortunately.