Chris Marshall

The Credit Bubble: Deregulation Gone Wild

I believe that whatever actions are taken to resolve this matter, it will invariably end with the consumer paying, in one form or another.

If the Treasury stands behind the debt, the Government has greater debt and will, eventually raise taxes to reduce the deficit.

If they do nothing, the debt falls to its true value, banks and monolines fold, and equities/ bonds/pensions fall in value. This means higher pension contributions for the consumer, among other things.

This is without the effect of unemployment, and lack of confidence, on the markets.

Some form of action needs to be taken against the executives, to curb the excessive risk profiles of the banks. I would suggest letting a regional bank and a small investment fold as warnings, and try the executives under SOX.

Ultimately players will only change their risk/reward views, if the risk is being jailed,fined, and barred from the industry, on their release.