The way corporations are treated under the law needs to be rolled back to the early 19th century, when natural persons were still considered superior to corporate persons, corporations were chartered for very specific purposes, and all corporate charters had explicit time limits (i.e. no perpetual corporate life was legally allowed).

Learn what a tiny fraction of the population knows: the “dead hand” of the corporation has crushed the life out of our society. Read “Gangs of America” by Ted Nace, you can either purchase it on Amazon or read it for free here: http://tinyurl.com/d32qej

I like Obama, but I’m also painfully cynical. Perhaps the decision to use kid gloves with the financial industry and to give Goldman the keys to the kingdom is Obama’s Deal With the Devil. It is no secret that the financial industry has been quite supportive of Democrats as of late, Dems could probably go even further with a little more support. The fact of the matter is that money buys formal political power and often the ability to rent the means of information distribution matters more than facts.

There are 8000 domestic banks. Thousands of them are in a position to grow rapidly if only the government stops propping up the Citibanks and the GMACs of this world.

The feds are trying to cartelize the banking system. Goldman Sachs won’t play ball. This is not an antitrust issue, unless you want to talk about arresting Geithner.

No one comes to the IMF willingly because they know the cure is going to be “harsh” on some institutions and people important in the country’s private and public hierarchies.

And that’s Johnson’s point. In the US, just as in all those other troubled countries, there’s been regulatory capture and cross pollination. To the level where, frankly, they are the same people.

The US has one big “advantage.” It can still get credit. And credit denominated in its own currency.
The question that needs asking publicly is: Do we fail to execute well known reformations, and therefore risk overturning our one big “advantage?” Or do we take the necessary steps, and not risk our one big advantage?

I’m in Johnson’s camp.

1. financial system regulation – Why derivatives are not properly regulated? Why AIG, an insurance company, can gamble in derivatives with no oversight?

2. monetary policy – Should the Fed actively prevent asset bubble? Greenspan didn’t think so but he is wrong.

The government has failed both of the above. Had our government handled just one of these 2 well, a very strong case can be made that the current financial crisis would not happen.

On the other hand, even if we had limit on bank size we still would not be able to make a strong argument that the current crisis would not happen. Historical there are various examples of large number of small banks getting into trouble. AIG isn’t even a bank!

1. financial system regulation – Why derivatives are not properly regulated? Why AIG, an insurance company, can gamble in derivatives with no oversight?

2. monetary policy – Should the Fed prevent asset bubble?

The government has failed both of the above. Had our government handled just one of these 2 well, a very strong case can be made that the current financial crisis would not happen.

Well, I bring you great tiding! Your wish did come true for Lehman! Lehman is not surviving on government support at all! You should be pleased! No? Any clue how much that fiasco cost? Last I heard it was just one measly global recession! Doh!!! Now say it again with feelings!

Hahaha, “penny wise, pound foolish”, thy name is Nemo!!!

By the way, the idea of “help the banks earn their way out” is basically what the Obama teams has done and continue to do. It isn’t my idea. Nemo, do you think the Obama team and the bankers are in on this together? Hmmm, that must be it.

“…Treasury and the Fed are risking the creditworthiness of the sovereign and the soundness of the currency, respectively…” – Nemo

Nemo that is a really good point! What is our government doing? Hmm, wait just a minute, why is the USD increasing in value? Don’t the foreigner know better? Darn it, foil again by facts and logic!

Nemo, don’t feel bad! Everyone knows it is a lot easier to spew emotional none sense than to think clearly! It is an aptitude thing; no one will blame you! Nemo, you are a real bundle of laughs and quite useful when properly manipulated!

Just to satisfy your curiosity, I’ve never worked in a financial institution.

I have said this before in here, but after your comment regarding “armed citizens”, I had to reiterate some previous comments i had made on this issue.

I don’t believe the US politicians, power brokers, bankers, and related criminals, fear anything other than the citizens literally revolting. And why should they? Do you really think these criminals CARE that people are talking and blogging and holding tea parties? “Words” never killed anyone, and I firmly believe the only thing these criminals in Washington fear would in fact be millions of armed citizens marching into Washington, out for blood.

Understand, I do not believe in violence in any form. But there are moments in life when good people are left with no alternative….and this is one of those moments.

What is happening here is, literally, the largest crime in the history of civilization. The unfortunate thing is that the people who could stop it, are watching it unfold before their eyes, and doing nothing to put a stop to it.

I do believe that when the Dow reaches 4000 next year, and the S&P is in the 500′s, but Washington is still funneling trillions of dollars of “the people’s” money to the criminals…..I do believe at that point they will revolt in the US. When the americans finally realize that they are, literally, about to be destitute, they will act. But then, it’s to late. The theft has happened, and those who stole will ride out the ensuing years of Depression, it relative comfort on their stolen fortunes.

I do believe thats their future in America…..so sad.
AA

http://iloveclosing.com/2009/04/17/the-sin-of-selling/

Cheers
The Closer