Plan B Economics'  Instablog

Plan B Economics
Send Message An existential economics portal providing alternative insights on investing, empire, energy and and life.
My company:
Plan B Economics
My blog:
Plan B Economics
  • Paul Volcker Spooks the Markets 1 comment
    Jan 21, 2010 9:57 PM

    Standing shoulder-to-shoulder with Paul Volcker and Joe Biden, President Obama proposed plans to curb the finance industry by re-enacting Depression-inspired banking legislation.

    Obama is expected to publicly endorse proposals by Paul Volcker, including limits to proprietary trading within commercial banks. Volcker believes banks should be broken up, essentially leading to the resurrection of the Glass-Steagall act of 1933.

    Volcker, who was head of the Federal Reserve in the 1970s/1980s, is often referred to as the Dean of American banking. He is widely respected as a man who has the balls to do what it takes to make things right.

    Volcker has publicly stated that many financial innovations provide no benefit - and are often dangerous - to society as a whole. In fact, he proposes the current system (as demonstrated via the bailouts) presents high risks to society but high rewards for banks. Interests are clearly not aligned.

    I believe the fact Geithner and Summers were nowhere to be seen sends a big message. The Obama administration is taking a hard-line position against the banks. Politically-motivated or not, such a move is welcome given the ridiculous antics (high risk behavior, bailouts, subsequent return to high risk behavior, followed by record-breaking bonuses) of banks over the past 2 years.

    Such threats to the banking industry are bad for bank executives and bank shareholders...but a stable banking system will be good for society (and the economy) over the long run.

    Disclosure: No stocks mentioned

Back To Plan B Economics' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (1)
Track new comments
  • 58robbo
    , contributor
    Comments (125) | Send Message
    This is all symptomatic of a system where we are divorced from our own retirement planning. Glass-Steagall is just the red herring! The financial industry is forever trying to complicate things in an effort to justify their own existence. this aside from the fact that we're almost forced to speculate with these clowns through the banker/mutual fund/pension fund friendly tax code. by and large, ordinary folk managing their own retirement would not have fallen for the mumbo-jumbo which evidently mesmerized those entrusted with our pensions
    2 Feb 2010, 08:13 AM Reply Like
Full index of posts »
Latest Followers


  • Why Richard Branson Thinks Now Is `Good Time to Start Businesses'
    Sep 19, 2012
  • Pedro Schwartz on the creation of money out of thin air
    Sep 19, 2012
  • If dividends were a bubble, wouldn't yields be non-existent?
    Aug 8, 2012
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.