Simon Johnson comments of Geithner and Summer’s 5 point plan to form A New Financial Foundation:

And of course the complete omissions from this document are breathtaking.  No mention of executive compensation or the structure of compenstion within the financial sector.  Not even a hint that the complete breakdown of corporate governance at major banks contributed to execessive risk taking.  And no notion of regulatory capture-by-crazy-ideas of any kind.

Overall, there are no surprises here.  Brick by brick, we are building the foundation for the next financial crisis; by all indications, it will be more disruptive and a great deal more damaging than the crisis of 2008-09.  But presumably by then the authors will be out of office.

No change you can believe in here:  the “new financial foundation” is the same shifting sand as the old one.  Every time those guys open their mouths, they make it more clear they are in the pocket of the big banks and just want to get their man reelected whatever the cost to the people of the United States…

2 Comments on “Bandaids to get us past elections”

  • We know who the losers are. What we need to find out is who the winners are.

    You see … these guys running around Washington and NY aren’t acting like owners. They’re acting like royalty.

    I believe that that perspective has been dis proven over our collective human history. It is in fact why this country exists today.

    You see … when it comes right down to it — when the rubber hits the road — the free market is the only way to go in which to work towards the Utopian idea of fairness.

    The free market is in fact a function of the greater good.

    The US Government is currently working against the greater good.

    There is no escaping from the financial debt that the US Government has allowed to incurred. That does not mean however that those who put us into to this situation should be allowed to continue in their present positions of authority. They made bad decisions. I do in fact want somebody else in charge.

    Any “sweeping” new regulations must include these guys stepping aside for new blood.

    And the best way to insure this happening is to put the fear of the voters in EVERY politician running for election in 2010.

    The purpose of elections is to provide the means by which we avoid mobs from taking up pitchforks to throw the dad gum bums out.

  • While I’m on my soapbox … here’s a petition drive for you — Bernanke … tell everybody right now that you will NOT accept another term and that you are taking a position at WHATEVER university you want to … I imagine in the world.

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