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Bloviating Zeppelin: Control Pushed UPwards To The World

Bloviating Zeppelin

(in-ep-toc'-ra-cy) - a system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to sustain themselves or succeed, are rewarded with goods and services paid for by the confiscated wealth of a diminishing number of producers.

Monday, April 26, 2010

Control Pushed UPwards To The World


Mr Bush set precedent.


And then Mr Obaka took the ball and ran, to the geometric tune of billions and trillions of dollars.

When, in truth, all we had to do as a nation was: NOTHING.

Those who would have failed, SHOULD have been allowed to fail. Every bank, every S&L, every investment group, every car company, every public or private group. Every entity deemed "too big to fail." They should have been ALLOWED to fail.

An equilibrium would have been reached, and by this time already.

We would already have been into various actual recovery modes. Instead of the false and artificial indicators held in obeisance now.

Mr Obaka now wants:

The US is preparing to pivot from domestic regulatory reform to a push for a tough new international capital regime after the weekend’s G20 and International Monetary Fund meetings glossed over differences between leading economies.

Tim Geithner, US Treasury secretary, met Mario Draghi, chairman of the Financial Stability Board, on Sunday to discuss the contours of a system that would decide the safety and profitability of banks for decades to come and could eclipse the arguments over bank taxes and regulation.

EDITOR’S CHOICE
In depth: IMF - Apr-21
IMF fails to address exchange rate debate - Apr-24
IMF communiqué in full - Apr-24
Money Supply: Don’t mention the yuan - Apr-24
Nations disagree over IMF bank taxes - Apr-23
Blog: Money Supply - Oct-07

But the different positions of senior central bank and government officials from several countries expressed to the Financial Times on the sidelines of the G20 meetings in Washington suggested that a final international agreement remains a challenge.

The G20 communiqué on Friday said: “We recommitted to developing by end-2010 internationally agreed rules to improve both the quantity and quality of bank capital and to discourage excessive leverage.”

But participants said little time was spent on the issue and that officials were gearing up for a battle at the June meeting over the direction of the new standards, which would prevent banks from relying on short-term funding and disqualify some assets from counting towards core regulatory capital, the highest-quality loss-absorbing part of the capital structure.

The most important fault line runs between a bloc of countries that includes the US, the UK and Switzerland and one that includes Germany, France and Japan.

Let there be no mistake: it is all about control. Of private industry by government. As long as it exists.

BZ

8 Comments:

Blogger Old NFO said...

You are right... sigh...

Mon Apr 26, 04:55:00 AM PDT  
Blogger Always On Watch said...

The G20 communiqué on Friday said: “We recommitted to developing by end-2010 internationally agreed rules to improve both the quantity and quality of bank capital and to discourage excessive leverage.”

Quite the fast track now!

I'm worried that capitalism may be done for -- at least for a long time to come.

Mon Apr 26, 06:01:00 AM PDT  
Blogger TexasFred said...

And then ya read headlines about GM paying back, with interest, the bailout money...

They used TARP to pay back bailout...

Peter, meet Paul... Robbers!

Mon Apr 26, 07:05:00 AM PDT  
Blogger Animal said...

"Those who would have failed, SHOULD have been allowed to fail…An equilibrium would have been reached, and by this time already."

Hmmm. MAYBE.

That's always the trouble I have with this sort of thing: what you suggest MIGHT very well have happened. Or…it might not. I won't even pretend to know how to compute "odds" on a possible future outcome like that, although someone probably could come up with a reasonable number. But, you're stating a *future* maybe on a *past* path that was never taken. Like Monday-morning quarterbacking, it's all too easy to do…but has no way of every being proven OR disproven.

Mon Apr 26, 09:25:00 AM PDT  
Blogger Bloviating Zeppelin said...

Okay Animal, I'll go with that. I'll stand by this: I'll bet things would have reached equilibrium FASTER had we done nothing instead of pissing away literally billions and billions.

TF: and you know, of course, the banks are borrowing money from the fed at 0%, turning right around and charging 1 - 2% BACK?

BZ

Mon Apr 26, 01:21:00 PM PDT  
Blogger Animal said...

Having just re-read my earlier comment, I realized I should have stated clearly and on the record: I'm totally with you in thinking that the concept of "too big to fail" is a really bad idea. That concept guts capitalism…which, in sickness and in health, is what we have here. I *do* agree that companies whose decisions have resulted in failure being the only option, SHOULD be allowed to fail. Maybe that would deter repeat offenders, and we'd actually learn from our history for once.

Mon Apr 26, 01:50:00 PM PDT  
Blogger Pasadena Closet Conservative said...

Animal, most things work out just fine if they're left alone. Obviously there are -- and have been -- certain historical exceptions. But on this, I'm right there with BZ.

Mon Apr 26, 02:32:00 PM PDT  
Blogger Bloviating Zeppelin said...

Animal: BINGO! You just offered THE point to be made out of this.

PCC: and good to see you back!

BZ

Mon Apr 26, 03:14:00 PM PDT  

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