ResourceWise

Do Paulson and Bernanke Really Understand What's Going On?

When I heard the Paulson-Bernanke-Cox deposition before the Senate Banking Committee yesterday, I did get a sense that they were not taking a multi-pronged approach to the challenge at hand. So Jason's perspective is a useful addition to the picture. I suspect that the Treasury et al are finding it difficult to put all their cards on the table, so we're probably seeing a fraction of the picture. I would vote for an equity infusion provided the respective banks open their books to the government and provide them with an accurate description of their 'current state' with a credible action plan to navigate their way ahead over the next 36 months. The equity infusion they receive will depend on the 'perceived value' of their current situation and the credibility of their 'corrective action plan'. Doing anything less would just mean throwing good money after bad.

Stale Ideas Killed AIG, Lehman

When board members and CEOs fail to recognize problems facing their company - it is either hubris or laziness. If they understood their role as the trustees of shareholder wealth they would behave differently i.e. look at problems with open eyes and listen for solutions with open years. Employees at all levels within such organizations have ideas and solutions that never see the light of day - because most senior management live in a bubble, which when it bursts releases them to float away on their golden parachutes.