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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (113704)	5/16/2012 8:11:27 AM
From: RetiredNow	Read Replies (2) \| Respond to of 149317

He's only partially right. We absolutely need government to do something here. But right now, the Federal Reserve is part of the problem and has become an enabler of bad banking, instead of a resolver of bad banking. Bad banking is a result of bad government policy. If our government was doing their job properly, we would bring back Glass-Steagal and separate the speculative portions of the big banks from their depositor institutions. Then we'd break the big banks apart until they are no longer too big too fail. Then we would remove the Federal Reserve guarantees from the speculative businesses that remain. Then the market can be relied upon to let those speculative enterprises fail without risk to the broader economy. If Jamie Dimon wants to make huge bets that result in $2B losses, then by all means let's let him do that, but he needs to do that with private financing, not with a government backstop, and it needs to be done without commercial depositor money at risk. In short, he needs to create a hedge fund and find investors willing to take those big risks, instead of putting the entire economy at risk with his reckless trades. The problem isn't that the government isn't involved and it's not that the government should do nothing as the GOP wants, but rather it is that the government needs to solve the root causes of the problem and quit dancing around the issues.