I just see all the problems it’s created now, the horrible public outcry. It’s had a terrible, terrible impact on public attitudes toward the financial systems, toward the regulatory community. Sheila Bair, on MacNeil Lehrer on Friday
Public attitudes were never really that great when it came to the financial system, Mrs. Bair. At least not in regards to who the banks and the regulators were looking out for, namely themselves first. Now that is normally not a bad thing, gotta, as the saying goes, look out for number one, right? It worked for years, but the underlying issue here, the lack of trust you site in the statement you made on Macneil Lehrer was brought about by the issues that created the banking crisis in the first place.
While she says taking tarp money and putting into failing banks to prop them up was a mistake, the report from bloomberg says that Henry Paulson was forced to:
drop the strategy and use the $700 billion fund to inject capital into banks when the plan prompted lenders to hoard cash and failed to halt a slide in the stock market.
But as I remember it, that wasn’t the case at all. He gave the initial plan up without so much as a struggle. Read this, perhaps it will refresh your memory a bit. Which leads me to a third quote and a simple point.
Given the urgency at the time, no one should be held accountable “for not thinking all this through,” Bair said.
Yes there was urgency, there still is. But no one to be held accountable, sheila? Henry Paulson gets congress, and the American people, to bite on a $700,000,000,000 bailout of Wall street, turns around, and after only a few weeks, abandons the initial plan in favor of just giving money away to the big banks, without any strings attached, costs us Hundreds of billions of dollars. We then pay more money on top of this to other firms, like AIG and Citigroup, then on top of that, we need to spend a gazillion dollars just to try to get the economy started again. BTW, that trying to get the eceonomy started again? We call that the stimulus bill, which ended up unfortunately being both too small and largely ineffective, despite its size.
And no one should be held accountable, sheila? Really? Henry Paulson needs to answer some tough questions in front of a judge , for justice to be served properly before I and a great many other Americans are satisfied that there was no wrongdoing, and that you are right. A lack of accountability s at the heart of what went wrong here in the first place, Mrs. Bair. Adding more of it would only make it worse.
Henry was an idiot who reacted the wrong way when it hit the fan, Sheila, despite his best intentions. The way tarp was used hurt everything, from the over one hundred banks that have failed this year, that could have used that extra money for themselves, to the current presidents attempts at fixing this ailing economy. Don’t defend the indefensible, don’t you be an idiot too.
Watch another viddy. Elizabeth Warren explains things quite clearly here.
That was fun, wasn’t it? More later on!
Today’s nuggets. via wikiquote: Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds. Thomas Paine
In fact, without any exaggeration, the current mechanism of money creation through credit is certainly the “cancer” that’s irretrievably eroding market economies of private property. Maurice Allias, 1999