Well said. What you have suggested is restructuring the whole management system. Can I confirm that ? The consequence of the slogan "Let them fail" is indeed dangerous. Letting the banks and the important financial institution go bust, is tantamount to the act the removal of the "heart" of the economy. Its the power station to the economy in its entirety. Yet bailing them out in its current form, without transparency of how the money is spend, without any restriction and provision or supervision, is humbug to the core. Bailing them out does not solve the problem. The politicians, regulatory bodies, the banking execs all have their hands in the cookie jar. To ask the politicians to regulate the banks is a gross joke. Campaign money have been doused on the politicians to keep them in power before the whole sub prime crisis exploded in everyone's face. The question is have anyone really press for the FBI to investigate the wrongs of the banks ? The AIG issues throws up the root of the problem. Everything the banks does or the previous regulatory missteps of the government itself was all "LEGAL" and "LEGGIT". Which clearly underscore the root cause of the problem. That is, there is a DENIAL and refusal to look at the mistakes that was made by the bankers and the politicians honestly and decide on a course of action to take corrective actions. Pouring more money into the banks is in fact fueling the cancer which cause the problem in the first place ! The system remains corrupt and contagious. To even begin to think of a complete restructuring of the current financial system demands global cooperation and joint action, but that takes time and perhaps it is even impossible to do so. Idealistically, speaking, there is a urgent need to redefine the scope and how the bank create wealth. There is a urgent need to separate the banks operation, that is merchant banking and speculative operations must be kept APART. Both shall never be mixed up again. Above and on top of that, the concept of "hedging" , of "leveraging" must be regulated very very very tightly. One more spoonful of toxic slime will and always spoil a good serving of broth. All the hocus pocus of the wall street and banks should be exposed and then the antidote could be found. But just look at the current development of what is going on. Its like a sore ass reality game shows. Every politicians is still putting up an act and no one seems keen to play simple simon. Which I agree with Dan. Sometimes common sense aren't that comon. Cheers
the let them fail ideology would not apply to AIG.... they are a huge asset to the economy and if they failed there wouldn't be much left... times would definitely get tougher... i'm happy to see that their bonuses were cut by 90% mofo's are making 250k+/year well more than they need....
I was pissed at first but then .. after so many things happened around me .. fuck that .. whether AIG collapses or not, it will not affect me personally. At least right now, I am making money off their stocks ... that pays my bills.
Dear Dan, I have a gem of a vid, 15 mins which could actually throw light on what we have just covered in our conversation. Its slightly on the heavy side, but I figured that its worth a post. It is indeed insightful and offer loads of food for thought. Check it out when you have 15 mins to spare. Cheers ! http://www.ted.com/talks/view/id/487
