RJMoran

Is Financial Catastrophe Imminent?

I have to agree with JSTRATT! Banker hubris in this situation is astonishing! They've all had their powwow in Washington and they KNOW they'll get away with this...
As for the other suggestions on your list? You're quite right in saying that even a relative few changes at this junction would go a long way to turning this tanker. Coherent, targeted, effective change during a crisis isn't exactly Washington's strong suit...They usually go for scattershot over spending hoping that something will stick.
And no matter how tempting from a moral standpoint, shutting down even part of the banking system, with it's massive shadow market of derivatives is not possible, likely or prudent! They'll all 'go along to get along' and we'll somehow muddle through I guess. The alternative IS unthinkable...No one seriously wants to or is the system likely to 'go there'! We've had a glimpse at 'Global financial meltdown' and I don't believe we'll cross that rubicon... We've all read sci-fi/futurist scenarios 'post social order breakdown' and I doubt we're there. yet

Things to Consider About an Aggregator Bank Intervention

While I agree with the part about buying XLF, I'm not sure shorting the TLT is wise. The gov. has said it will do everything it can to keep rates down to help the housing industry recover. I assume that means they'll intervene in treasuries and keep them from falling...?!