Dear
E,
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,
Alan
From: EM
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
-
Senators push banker removal from Fed boards MarketWatch
- Last Update: 5/22/2012 4:43:00 PM
- The political fallout in Washington of J.P. Morgan Chase & Co’s trading loss continued to spread Tuesday as two liberal senators moved not only to have CEO Jamie Dimon but all bankers removed from the boards of the dozen Federal Reserve regional banks
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