Observers such as legendary fund manager Mohamed El Erian believe that the financial crisis has precipitated a sea change that will take the West to a ‘new normal.’ That would be a problem. Meanwhile, however, Wall Street has returned to the Old Normal and is on track to reach record levels of compensation this year.
The arrogance of the financial institutions, the mad scientists they employ to manipulate the rules and rule makers, and the Emperor's New Clothes (trust me they're safe) marketing tactics they employ really do need to be regulated--- by the government, sure; by corporate boards of directors, absolutely. In a Working Capital Model world, there would be no financial crisis.
Goldman Sachs began its meteoric rise from one of the many financial firms to the one true elite player as Paulson took power. Goldman Sachs quickly gained traction as the market directional leader almost like a blessed being. They could do no wrong..
I was thinking today about what Hank Paulson is up too now. So i did what anyone would do when looking for information, I googled him. Hank Paulson was the 74th Secretary of the Treasury until January 20th. To be perfectly honest, I never paid attention to who the U.S. Treasury Secretary was until this whole economic crisis hit last September.
Sheila Bair, chairwoman of the Federal Deposit Insurance Corp., told the Senate Banking Committee that her agency and the Treasury Department are working closely to find ways to prevent avoidable foreclosures. The plan would use the Treasury Secretary’s new authority under the Emergency Economic Stabilization Act to provide guarantees to mortgage lenders.
I don't have a link to the article as this was e-mailed to me in plain text, but thought I would pass it along to all of you out there.
Commentary by Ann Woolner
Oct. 3 (Bloomberg) -- It is one thing to re-pitch the Wall Street bailout bill to encourage finger-in-the-wind elected lawmakers to enact it.
Just came across this article on ClusterStock and thought it was very insightful. Henry Blodget has a 14 point list on how the proposed bailout will play out. I think there is a lot of truth in this article, a must read for everyone.
The question that has been coming up again and again is why this has to be done by Friday, by early next week, why can't we take our time and do it right?
