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making mountains out of molehills made by mountain dwelling moles...,
2009-03-23 11:09:18
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warning: markets may behave poorly if everybody is irrational...,
2009-03-24 13:07:47
your attention please: we are being delayed because of looting ahead. we will be moving shortly, if there are any tracks left:
It does not expend "political capital" for a regulator to step in and restructure an insolvent financial institution.
I'm getting the impression everybody behind the Geithner put knows it won't actually work. Sheila Bair says 'some banks are beyond saving', Bernanke is saying we should have nationalized AIG in the first place, which, you know, should have been OTS' job. These people could have expanded the department and made the request Geithner is only just now making for authority to close non-bank financial institutions, so the Office of Thrift Supervision could do to AIG or Lehman just what they did to IndyMac, Countrywide and WaMu. I really have a hard time believing that they didn't have that power already if they could have ordered AIG to stop issuing CDS and expected them to obey.
It reminds me of that bit from The Three Amigos:
DUSTY BOTTOMS: "Well, we really don't have a plan B. We didn't expect for the first plan to work. Sometimes you can overplan these things."
And I believe we've just found out which one is playing Dusty.
:: posted by buermann @ 2009-03-24 11:32:40 CST |
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