Reinventing the Problem

The Fed and Treasury chiefs recommended to the House Financial Services Committee today a reinvention of the financial regulatory system.

While no insurance company will insure a house that is on fire, that's more or less what's going on here, and does absolutely nothing to address the cause of the problem.

Rather than suggesting there be assurance that we do not have a consolidated and collusive financial marketplace that results in firms too big to allow to fail, Bernanke says, rather, "new tools are needed for ensuring an orderly liquidation of a systemically important securities firm that is on the verge of bankruptcy, together with a more formal process for deciding when to use those tools." (AP)

So instead of ensuring a failed financial institution cannot be "critical" in a non-collusive, pluralisitic, free market environment of relative safety, we are going to ensure the means for a critical failure with "an orderly liquidation" and "a more formal process" that gives it the legitimacy of public authority--or ensuring a Hamiltonian model, which is the problem reinvented, not the solution.

No. These people are not stupid. They are corrupt!

This is not public service. It is self-service using good offices with the force and legitimacy of public authority.

Get the neo-conservatives out!

Vote Obama, 2008!

Very best wishes.