Interesting. I thought the financial system existed to provide a mechanism for storing and trading wealth.
Over the past two years, we have faced the most severe financial crisis since the Great Depression. The financial system failed to perform its function as a reducer and distributor of risk. Instead, it magnified risks, precipitating an economic contraction that has hurt families and businesses around the world.
But I guess that would be a wealth based economy which should not be confused with Geithner's debt based economy. 'Cause, you know, if you don't have a debt based economy, you won't have interest payments, and then what would be the point? It's not money that makes the world go 'round - it's debt and interest.
No worries! Central planning to the rescue! 'Cause, you know, that worked out so well for the Soviet Union. And the existing regulation to which Mr. Geithner refers to worked so well that we should probably have more of it.
First, existing regulation focuses on the safety and soundness of individual institutions but not the stability of the system as a whole. As a result, institutions were not required to maintain sufficient capital or liquidity to keep them safe in times of system-wide stress. In a world in which the troubles of a few large firms can put the entire system at risk, that approach is insufficient.
Obviously if Mr. Geithner doesn't believe in personal responsibility, or corporate responsibility, there is no reason he should believe in sovereign responsibility.
Fifth, and finally, we live in a globalized world, and the actions we take here at home -- no matter how smart and sound -- will have little effect if we fail to raise international standards along with our own. We will lead the effort to improve regulation and supervision around the world.
Anyway, good luck with your plans for global domination Mr. Geithner. I don't think you're too credible with the Chinese but they are only 1/5th of the whole world population so don't let that discourage you. Central planning FTW!
[Update: 2009 06 16 - I can't believe I missed the last paragraph. It's probably because the article made me want to puke. But this captures it all:
By restoring the public's trust in our financial system, the administration's reforms will allow the financial system to play its most important function: transforming the earnings and savings of workers into the loans that help families buy homes and cars, help parents send kids to college, and help entrepreneurs build their businesses. Now is the time to act.
Wow. There it is in black and white. It's all about the loans. Transforming earnings into loans. Good fucking grief.
"Workers." Workers! Who the fuck is he talking about!? Workers! How about this:
Workers of America Unite! Save your fucking money and don't take out any loans!
Read Nano-Plasm - you know you want to.
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