MOChassid

The rambling thoughts of a Modern Orthodox Chassid (whatever that means). Contact me at emansouth @ aol.com

Monday, September 22, 2008

More From The Crisis: Send in the Clowns

1. Last Wednesday was one of the scariest days I've ever experienced in the market. The global banking system essentially came to a stop. Only talk of Hank Paulson's new plan prevented disaster. I'm not sure everyone gets how bad it was.

2. Democrats and Republicans alike are making fools of themselves, piling on to Paulson's desparate rescue package. When I hear things like "we need to regulate more", or, "we need Congressional oversight", I laugh.

Don't these bozos know that the major banks and investment banks have regulators swarming all over them? Take Citi, for example. There are teams of regulators from the Fed at Citi's headquarters literally all year long. Do you think the regulators didn't know that Citi had gazillions of dollars in SIVs? No. They (like Citi) simply didn't understand the downside risk. By the time regulators figure things out, it's always too late. No amount of regulation is going to prevent people from doing stupid things.

And oversight? These are the same dopes that took untold millions of dollars in contributions from Fannie and Freddie and let that supposedly private company run itself into the ground on the taxpayers' dime. Puh lease.

They need to shut up, get out of the way, and let Paulson fix this thing. Period.

3. Speaking of which, Paulson should immediately appoint Michael Bloomberg as the chairman of the new resolution trust company (or whatever it will be called). He, at least, is a businessman who gets the joke. And, with no ability to run for a third term as mayor, what better use of his skills could there be than saving the world?

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7 Comments:

  • At 9:55 PM, Blogger Child Ish Behavior said…

    I couldn't agree with you more. It is all about people's stupidity.

     
  • At 10:05 PM, Anonymous Anonymous said…

    But right now there's no proposal for a resolution trust company--just "trust Paulson" and whoever gets appointed to succeed him (and so far the only person we've seen McCain pick for his potential administration is Sarah Palin).

    Unless you've heard more details than I have heard....

     
  • At 7:28 AM, Blogger Gil Student said…

    Buckle your seatbelt. It ain't over yet!

    Anonymous: We don't have time to wait until the election. This has to get started much sooner.

     
  • At 8:53 AM, Blogger Cyberdov said…

    But why trust Paulsen, or anyone else who failed to understand he downside risk (as you put it)? Shouldn't we put someone else in charge? A naive hope, perhaps, but shouldn't there be consequences of failure? What about Paul Krugman, he seems to have it right most of the time?

     
  • At 8:56 AM, Blogger Cyberdov said…

    And please explain the consequences of 'the global banking system coming to a halt' - might it be better to have a temporary halt while a useful plan is devised, rather than just shovel money at a hastilty conceived plan?

     
  • At 11:34 AM, Blogger Honestly Frum said…

    I heard McCain float the idea about Bloomberg and he turned it down.

     
  • At 2:51 AM, Anonymous Anonymous said…

    I'd be shocked if MOC would like having Krugman in charge. Leaving aside his mildly anti-Israel views(which always annoy me when he shoves them into his articles on buisness) He's leans very heavily democratic, which i enjoy but would upset the MOC to no end. Though im sure he can speak for himself and its just conjecture on my part.Brad

     

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