social and economic stability …

As a non-economist, it seems to me part of the solution is simple. Tax reform. America needs to close the wage gap between the very rich and very poor. (IMHO, ridiculous, for one person to make $100 million in one year.) Social and economic comes from a widespread middle class.

Michael Sandel points out that “the faith that markets are the primary instrument for achieving public good” has failed.

It is music to my ears when he calls for a re-examination of “civic life”. At a certain level it resonates. It is something people hunger for.

However, like most powerful new technologies, we’ll need to iteratively improve the implementation to work out all the bugs.

I spent an hour tonight ripping Goldman here if you want to check it out.

We sent our best mathematical minds, who could have been gainfully employed elsewhere in the economy, on a hopeless mission to eliminate the risk posed by human market interaction.

One has to think that getting them out of the casino and back to work would be a good thing. But as long as the dice are loaded and they’re still cashing in, there’s not much hope of this.

http://online.wsj.com/article/SB124762129423442667.html

I don’t know whether or not CIT should be bailed out. But I wonder if letting it fail means we’ve thoroughly institutionalized “too-big-to-fail” into the system. To earn the big bucks, you’ve got to have the size to engage in the risk and become big enough to insure you’ll bet bailed out when the risks don’t pan out.

Obviously, CIT isn’t having a solvency problem. Just a liquidity problem. It’s a crisis of confidence, not competence. Plain as day.

Bail them all, or let them all die, no political favoritism, or the inevitable vengeful paybacks will be uglier than the current mess.

Personally, at this juncture, I say bail them out. We are already so deep into this abyss of deficit…and have already conceived the climax of our governments mismanagement…lets bail out everyone and enjoy the party as long as we can.
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Great comment, what does it matter the problem is the system. But if we arent going to do anything about fraud, corrupt regulators, and hella government debt. Why make it hurt more than it has to.
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In the same vein if contracts are so cheap and poorly written by asset managers. Well why all the leg up on the economy when its NOT even the banks money OR risk. We need a radical change back to capitalism and in my opinion if a CIT bailout is step 1, step 2 should be just as full of possibilities like getting real real with the banks over this. give me wal mart banking over this crap, at least i can get a fair deal and never hear the world goldman sachs again.
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and if only one thing comes out of this that would be enough for me. no more goldman sachs, someone should really pay for the systemic failure, just like all the millions of dudes loosing their jobs, houses, and l8r maybe even families

And it does appear the government is going to give in:
http://online.wsj.com/article/SB124761812925042431.html#mod=testMod