Thanks for your email.
I missed the encouraging initiative you mentioned
The more I ponder investment banking, the more I think regulation -- as important as it might be -- is only a temporary measure which the wiz kids will soon learn to dodge. (No single source explains our economic quandary as clearly and succinctly as the 2010 Oscar-winning documentary, "Inside Job," freely available online at http://vimeo.com/23086688 With Spanish subtitles at http://vimeo.com/27292661)
The essence of lasting reform is to designate a specific “size threshold” beyond which “too big to fail” companies are automatically broken up.
The irresponsible high rollers who now dominate high finance know that The Really Big Bucks are gotten by gambling.
Furthermore, when fat cats are “too big to fail,” they know The Taxpayer will cover their losses, a moral hazard that only encourages them to run increasingly reckless risks.
The 1984 Ma Bell Divestiture lopped 70% off AT&T's net worth from la noche a la manana, an enforced break-up that is the precise template to put in place. http://en.wikipedia.org/wiki/AT%26T_divestiture
Ma Bell's enforced break-up is the precise template to put in place.
By obliging big companies to spin off dangerous “largeness” we enact a simple, direct, doable protocol, and furthermore, a protocol that will prove lastingly effective.
If the bastards do not bloat beyond all proportion, we can deal with them.
But once they cross a certain threshold, the rest of us are toast.
Everything depends on "divesting" The Big Boys (and Girls) before they get too big to fail.
Not only does divestiture forfend catastrophe, it is also true that spun-off subdivisions will do better, more creative work -- simultaneously generating more jobs -- than the outsized dinosaurs who “succeed” just by throwing their lard around.
It is every patriot’s democratic obligation to screw these bastards... before they screw us.
Bring your shears.
Bone up on castration.
Pax on both houses,
Sent: Tuesday, May 22, 2012 8:15 PM
Subject: Financial News for this afternoon: 5/22/12
Hola Alan: Did you get the news today? OJO