This Post May Already Be Moot

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3 Responses

  1. Jeff Lipshaw says:

    Neil, a sensible post about sensible suggestions. Particularly in observing as follows: “Efforts to ensure that those who made the wrong decisions do not walk away from the mess with huge payouts is at least politically necessary. . . .” Causing the equity owners of financial institutions to be diluted by the reduction in value of the assets (by way of exercisable equity warrants) strikes me as a sound risk allocation move. Capping executive comp, on the other hand, is indeed, as they say, lipstick on a pig, i.e. trivial in comparison to the amounts at issue, but even the non-revolting Republicans (take that however you like) seem to understand that is politically necessary at this point.

    For more on why it’s hard to point too many fingers, see my post on Credit Addicts and their Enablers.

  2. geoff says:

    I’m sorry–could you please describe all of this alleged deregulation to me and how it “caused” this problem? Yes, indeed, that deregulatory zealot Bill Clinton did help to deregulate the banks–a move which has only helped in this crisis (permitting BoA to buy Merril, etc.) So please, do tell, where’s the deregulation and how did it cause the problem?

  3. Bill says:

    Geoff is spot on. Blaming deregulation without giving the economic causation as to why is just post hoc reasoning.

    Also, without looking at the role of the Federal Reserve and its monetary policy over the past decade (especially after the 2000-2001 stock market correction and 9/11) you are not looking seriously at the problem.