More on Greed, Regulation, Lehman, The Financial Industry [View article]
I admit I tended to swallow free-market ideology right up until TARP disabused me. The point you make about greed and sloth being different sides of the same coin, i.e: Both being about obtaining unearned "rewards" despite any suboptimal social outcomes, is most useful. Big government favors rent seekers of all sorts and I wished to be freed from it's burdens, but the most greedy, the oligarchs, discard free markets in a nanosecond to buy the influence that has suffering Main St. paying $trillions to kleptocrats and the largest bonuses in history to Wall St. this year (Bloomberg radio, 10/13). So, your plan of regulation and a system to handle TBTF failures looks good to me. I like the part about haircuts; how is it GS got paid 100% on contracts it had with AIG? I would like to see lots of clawback and, there has to be plenty of flagrant criminal activity to prosecute.
More on Greed, Regulation, Lehman, The Financial Industry [View article]
So, your plan of regulation and a system to handle TBTF failures looks good to me. I like the part about haircuts; how is it GS got paid 100% on contracts it had with AIG?
I would like to see lots of clawback and, there has to be plenty of flagrant criminal activity to prosecute.