D. McHattie

The Lords of Finance: No Noblesse Oblige

Higher taxes on the rich is not the answer because the rich will just use their power to make more money.

Corporations only exist because we passed laws that made them legal entities.

We should not be reluctant to fine-tune legislation in order to reduce corporate power and smooth out inequalities of wealth and income.

The Lords of Finance: No Noblesse Oblige

Higher taxes on the rich is not the answer because the rich will just use their power to make more money.

Corporations only exist because we passed laws that made them legal entities.

We should not be reluctant to fine-tune legislation in order to reduce corporate power and smooth out inequalities of wealth and income.

Ben Bernanke Pleads for His Job; My Response to Bernanke

Bernanke needs to be outed as the smug, self-serving incompetent that he is. Mish cuts to the heart of the matter once again.

Perhaps we can bury Bernanke in the same hole that we dig for Larry Summers and Tim Geithner.

Too Big to Fail: The Real Choice

Amen, James.

Too big to fail is too big to exist. All this other regulatory song-and-dance will get us nowhere.

Why Did We Bail Out the Banks?

The problem is the Fed.

Price-fixing, which is what the Fed does with the price of money (ie: interest rates) is like the Ring of Power from the Tolkien series.

It is incredibly tempting to think that controlling interest rates could be a force for good if wielded by a benevolent authority.

But absolute power corrupts absolutely.

And if you control the money supply then your power is absolute.

Big Banks Drag Feet in Foreclosures to Reap Gains

"[The banks] cannot afford the imminent 50-70 cent hit on these loans as it would deem them insolvent."

Nailed it.

The banks are still insolvent and they do not serve the public interest. They are not a worthwhile recipient of taxpayer dollars, not from any standpoint.

These banks need to be wound down so that healthy, viable banks can take their place. Period.

Banks Try to Block Regulation, Saying It Will Hamper Innovation

The banks have proven that they cannot be relied upon to behave responsibly.

If they are going to act like children then we will have to treat them like children.

Housing's Big Picture Isn't Pretty

I agree that the mindset will change. But it hasn't yet.

Witness the crowds at Home Depot and Lowes again this spring. Witness the dramatic increase in sales of foreclosures. Witness the continued existence and popularity of HGTV.

Only when the severed digits of these knife-catchers lie strewn about the suburbs will the mindset change completely and irrevocably.

This will be the summer of knife-catching and false hopes.


On May 24 08:14 AM Daniel Herkes wrote:

> Another problem, possibly serious, is the long term psychological
> effect of the uncompleted subdivisions that dot the U.S. landscape.
> These "ghost towns" don't look very good; denuded of topsoil - only
> the most arduous weeds can purchase a foothold - yuk! Even if the
> communities succeed in rezoning the failed subdivisions, the mind
> set will settle with the consumer that "this place did not make it."
> A failed developed will not replace the topsoil, A failed developer
> cannot not correct the disrupted drainage caused by the exposed clay
> pan. The surrounding neighbors will not forget the uncut weeds, and
> the coyotes that have made dens in the dirt hills. These stimuli
> produce a decidedly negative mindset . . .
>
> As long as the empty subdivisions set potential buyers will avoid
> the poignant memory of a failed dream, and fail to respond to the
> lure of a new house. Well, it's only new until you buy it! The longer
> they set, the more powerful the memory.

Compensation: Banking's Dirty Little Secret

I can't agree with you Joe.

Banks create money, a power which our constitution gives only to Congress. Yes, the federal reserve plays an intermediary role but, in essence, private banks create money.

If we don't place some limits on bank executive compensation then they will continue to increase their salaries and bonuses until they are paid hundreds of millions despite losing billions for shareholders. Which is exactly where we are now.


On May 20 02:12 PM Joe Siegel wrote:

> No, owning a bank is not a privilege. I beg to differ; it is a right
> in the free marketplace. If you can raise capital, gain customers,
> and make a profit (maybe) by raising deposits and lending under existing
> fiduciary guidelines and regulations, then that is your business.
> (Pun intended.) The day we consider starting and running a business
> a "right" bestowed upon us by the government, is the day we say goodbye
> to any last remaining vestige of entrepreneurialism, and say hello
> to a stodgy, non-productive and statist European style social welfare
> state.
> Re: your above statement, it IS Socialism and Marxism for big brother
> to maintain a right to bestow or not bestow his blessings on our
> desire to raise funds, assume risk, and make a go of starting up
> a bank.

Credit Cards: Do the Banks Own the Senate?

Like a timeshare? Yeah, that sounds about right.


On May 15 04:20 AM Windsun33 wrote:

> Actually it is joint ownership with several other special interest
> groups, such as unions, giant corporate farms, etc.

Is America Turning into a Banana Republic During This Zombie Economy?

For a law professor, Obama sure doesn't have much respect for the rule of law (ie contract law).

Despite Fed, Money Supply Contracting

If I understand correctly, until banks sell the foreclosed homes they can still pretend they are worth the original mortgage amount. So there is a perverse incentive for banks to not do what needs to be done to clear up this crisis.

Meanwhile, productive young people are putting their lives on hold as decent housing remains indecently overpriced.

Once again, government and banks act opposite to the best interests of the electorate.

Letting the Zombie Banks Fail: A Viable Plan

Agree with the author completely. I can't fathom why the RTC approach to bank insolvency wasn't used right from the beginning.

The RTC approach also addresses that little matter of moral hazard which every bailout incurs. It's all about the reward system - if prudent businesses aren't rewarded and irresponsible businesses aren't punished then the entire system loses the compass by which decisions are made.

Warren's (Ridiculous) Prescription for Banks: Wipe Out Shareholders, Fire CEOs

I watched the William Black interview a couple nights ago. I would recommend that anyone interested in the truth should do likewise.

Black was heavily involved in the successful clean-up of the Savings and Loans disaster in the 80s. He made a great point that when Japan had its financial crisis in the early 90s, the US tried to get Japan to adopt our same Savings and Loans approach. Japan ignored our advice and experienced 'the lost decade' of 0 economic growth.

Which model are we now pursuing in our current crisis? Why, the Japanese model, of course. Because our administration is gutless and our electorate is ignorant.

Bank Bailout Comedy: Four Clips from Colbert

It is amazing that comedians are frequently more enlightened than the so-called experts.

The South Park 'Margaritaville' episode also comes to mind as being surprisingly insightful.