Good morning

On CSpan this morning is Simon Johnson, an economist who knows stuff. He referred to the regulatory apparatus in the U.S. as Byzantine. He said that when AIG was moving into reckless territory and inventing all those interesting new ways of  conducting business, they went ‘regulator shopping’.  And that was possible in the labyrinth of our system. Of course, many of the other big boys did the same thing.

courtesty Newsweek (I hope)

Interestingly, Johnson keeps his own money in a community bank in Massachusetts and a credit union in D.C. He endorsed the Move Your Money movement. (Go here to find a bank/credit union in your area.)

Last night, PBS re-aired their Frontline documentary about Brooksley Borne, the only regulator (somewhere in FDIC) who warned the Federal government (in the 1990’s) about the new ‘credit default swaps’. Unregulated, she warned, they would destroy us. But that was an inconvenient warning for the trio at the top of the US system – Bob Rubin, Larry Summers (and Alan Greenspan). They put a stop to her right quick! Rubin’s deputy was Timothy Geitner. Bet these fellas are thrilled to be back in charge. (You can watch it at the link.)

Obama may have to answer for that.

But I’ll bet the troops in Afghanistan – and Yemen according to Michael Isikoff this morning – are a little too busy to follow the career paths of the nation’s eminent economists. Because they’re busy fighting a war on this 131st day of the ninth year of that war.

4 responses to “Good morning

  1. Profit interests. Profit Interests. That is all powerful people care about. Yeah, banks and Insurance providers have certainly taken hits. And while I don’t know a whole lot about regulatory services and such things, I know that I would not trust them. If you think about it, they have the power of life and death almost, and I suspect that shady exchanges and extortion is the norm. And AIG, all they care about is building their monopolies accross the globe, all America is to those kind of people is a market, and they certainly cannot be trusted to put America first. It was greedy fat cats like that which sunk us to begin with. You see, just the fruits of Capitalism. “Screw the Country. Screw the people. Fill my pockets.” As for as putting money in a credit union, I had rather bury it my backyard.

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  2. Moe a great article and I would be happy to stamp an A+ on that one!

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  3. It is no big deal, as I am sure your money would be fine. I am just not very trusting with money. I’m just not the kind of person who would want to put my money behind other people’s money. I would not want to account for other people’s money, nor would I trust ordinary people to be faithful with mine. Big Wigs may be greedy, but they are already well paid, and most of all they are careful. I certainly do not approve of how careless and trusting credit unions are with other people’s money. Have bad credit? Just join a union. Not with my money. I will just stick with Wells Fargo, people who are the very best at what they do, thank you very much.

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