I love how it took major multinational investment banks blowing out to make people interested in an economy that's been quite lousy for a while now, but I digress...
As much as McCain's statement's on the economy scare you (and they scare me too, somewhat), I gotta note a couple of things: (a) I like to believe that it's precisely that same unbridled corruption and greed on Wall Street that made this country what it is today. But I digress again... (b) Obama's response, quite frankly, scares the hell out of me more. "He called on increasing government oversight and supervision on all regulated financial institutions and strengthening capital requirements" - the idea of those two things is downright terrible to a wall street that prides itself on self-regulation. The reason why financial markets work the way they do is because people in the industry have wide ranging options. And don't get me started on "strengthened capital requirements" - you might as well tell us not to do business at all, and the effects of this on the economy are clear and negative. Look up the money multiplier to get more of an idea what I mean.
To be fair though, the Obama's response article did bring up an interesting point: "“Over the last few years, commercial banks and thrift institutions were subject to guidelines on subprime mortgages that did not apply to mortgage brokers and companies.”
Which makes me wonder why myself and other people in my field are being punished for something a broker in a different field managed to pull out of his ass.
It's all shits and giggles until AIG loses an eye. And then it's hilarious.
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timeasmymeasure
no subject
Date: 2008-09-17 10:58 pm (UTC)As much as McCain's statement's on the economy scare you (and they scare me too, somewhat), I gotta note a couple of things:
(a) I like to believe that it's precisely that same unbridled corruption and greed on Wall Street that made this country what it is today. But I digress again...
(b) Obama's response, quite frankly, scares the hell out of me more. "He called on increasing government oversight and supervision on all regulated financial institutions and strengthening capital requirements" - the idea of those two things is downright terrible to a wall street that prides itself on self-regulation. The reason why financial markets work the way they do is because people in the industry have wide ranging options. And don't get me started on "strengthened capital requirements" - you might as well tell us not to do business at all, and the effects of this on the economy are clear and negative. Look up the money multiplier to get more of an idea what I mean.
To be fair though, the Obama's response article did bring up an interesting point:
"“Over the last few years, commercial banks and thrift institutions were subject to guidelines on subprime mortgages that did not apply to mortgage brokers and companies.”
Which makes me wonder why myself and other people in my field are being punished for something a broker in a different field managed to pull out of his ass.
It's all shits and giggles until AIG loses an eye. And then it's hilarious.