This is pure politics, plain and simple: put it off for as long as possible and then, maybe it will disappear altogether. Or at least until after the next election when the landscape could be altered significantly – in favor of the banks.
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The combination of a huge opaque market (23 times as large as the world’s domestic product!) and the big banks’ willingness to keep the profits but “socialize” their risks is downright frightful. It’s a haystack just waiting for a match!
Will there be any end to this? Apparently not, especially as Weiss Ratings has another 400+ banks on their “Very Weak” watchlist, and mounting evidence that the economy is headed into another recession.
When Zacks Equity Research announced on Monday the failure of two more banks in the current recession, the silence was deafening. The report blamed the usual suspects: “tumbling home prices, soaring loan defaults, and a high unemployment rate continue to take their toll on such institutions.”
The bank run at Afghanistan’s largest bank, Kabul Bank, was precipitated by the takeover of the bank by Da Afghanistan Bank, the country’s central bank, last week. By Friday nearly all of its currency reserves and most of its capital had been withdrawn by nervous customers, with no end in sight.
When TARP Inspector General Neil Barofsky criticized the Home Affordable Modification Program (HAMP) as being ineffective, he blamed the Treasury Department for not setting clearer goals for that part of the Troubled Asset Relief Program (TARP).
The unremitting flow of negative news about the economy has finally caught the attention of the mainstream media, causing an increasing number of economists to make comparisons between today’s recession and the Great Depression
When the House passed the 2,319-page Dodd-Frank financial reform bill by a vote of 237-192, all it did was confirm for many the extraordinary hubris of legislators believing they could in fact “fix” the problems they themselves created which resulted in the Great Recession of 2008.
What possible constitutional basis can there be for effecting a takeover of the entire financial sector?
Bernanke’s first term record was subjected to criticism and praise during confirmation hearings in December, and he was selected as Time magazine’s Person of the Year.