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…