The Banking Crisis Reappraised - Bonfire of the "Assholes"

[DGuller]

It seems to me that the problem is not greed, but the fact that we have to bail out those banks to keep the economy running. If we find a way so that all those greedy banks can go broke, the problem wouldn't be so serious.

I agree, I think that's the main goal.  Make it so that banks can indeed fail, because otherwise lemon socialism is the worst of both worlds.  Bernanke has said the same thing, so hopefully he'll do something in that direction.

[Ed Anger]

And don't even get me started on Ed.

I would have been an excellent cog in the nazi machine. Stamp this, shuffle that. Scream at underlings.

Easy peasy.

[Caliga]

I would have been an excellent cog in the nazi machine. Stamp this, shuffle that. Scream at underlings.

Easy peasy.

Well, you have plenty of practice with "VERE ISHT STEINER!!!11111111oneoneone"

[Valmy]

Well, you have plenty of practice with "VERE ISHT STEINER!!!11111111oneoneone"

Mein Fuehrer...Steiner....Steiner got you banned from X-Box live.

[Caliga]

Well, you have plenty of practice with "VERE ISHT STEINER!!!11111111oneoneone"

Mein Fuehrer...Steiner....Steiner got you banned from X-Box live.

I kinda liked the recent "Mein Fuehrer... Jacko... Jacko has died.  He cannot do your birthday concert" one.

[Norgy]

Now you get me all worked up to Dr. Merkwurdigliebe again. 

[Jos Theelen]

If we find a way so that all those greedy banks can go broke, the problem wouldn't be so serious.

All those greedy banks = all banks. 

Suppose we forbid banks to become big (max capital or some other regulation). Then I have no problem when they become greedy. If they fail they are out, and we won't miss them.

[grumbler]

Now you get me all worked up to Dr. Merkwurdigliebe again. 

Why ?  Its worth watching many, many times.

[CountDeMoney]

Management would include people like you, me and Caliga. Colour me unimpressed.

I'm a fantastic manager.
Fortunately for the massively bureaucratic and dyfunctional organizational culture I operate in, the fact that I am efficient, direct and possess little tolerance for their bullshit when it comes to getting shit done means that I will either A) eventually stroke out, or B) quit.

[DontSayBanana]

Suppose we forbid banks to become big (max capital or some other regulation). Then I have no problem when they become greedy. If they fail they are out, and we won't miss them.

Lochner Doctrine: http://en.wikipedia.org/wiki/Lochner_v._New_York

I'm in general agreement, though. Neither the size nor the corporate culture alone are the problem; if we were going to cap anything, I'd suggest capping hedging- Goldman Sachs was supposedly hedged, but there's a huge argument running as to whether they could have ever backed up the claim without government assistance.

FDIC's insurability limit seems to have helped stabilize retail operations for banks, so while the financial whizzes might be irked at the loss of one more way to make copious amounts of money, I don't see why we wouldn't get a similar effect from the CFTC capping hedging agreements.

[derspiess]

Suppose we forbid banks to become big (max capital or some other regulation). Then I have no problem when they become greedy. If they fail they are out, and we won't miss them.

Anything you try will end up hurting the people you're trying to protect

[Jos Theelen]

Suppose we forbid banks to become big (max capital or some other regulation). Then I have no problem when they become greedy. If they fail they are out, and we won't miss them.

Lochner Doctrine: http://en.wikipedia.org/wiki/Lochner_v._New_York

I'm in general agreement, though. Neither the size nor the corporate culture alone are the problem; if we were going to cap anything, I'd suggest capping hedging- Goldman Sachs was supposedly hedged, but there's a huge argument running as to whether they could have ever backed up the claim without government assistance.

FDIC's insurability limit seems to have helped stabilize retail operations for banks, so while the financial whizzes might be irked at the loss of one more way to make copious amounts of money, I don't see why we wouldn't get a similar effect from the CFTC capping hedging agreements.

That's OK to me, as long as we create banks that can go broke. I am not sure your proposal does that, but if it does it, great idea.