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Too failed to live not too big to fail

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Too failed to live not too big to fail

Description: And be in no doubt; administration policy as laid out by Treasury Secretary Tim Geithner, Fed chief Ben Bernanke and White House economic advisor Larry Summers has as its core a fervent commitment not to take into state control large insolvent institutions, preferring instead to essentially bear the risk and the cost without having a clear line of accountability for day-to-day bank actions.

They are in essence going down the route Japan took in the 1990s, keeping banks alive and hoping they will earn their way out of the capitalization hole. And, to be fair, the yield curve in the U.S. is a lot steeper than it was in Japan, meaning that banks will earn on the difference between their funding costs and the longer-term rates they charge customers.

Original URL: http://blogs.reuters.com/great-debate/?p=2501&preview=true

http://blogs.reuters.com/great-debate/?p=2501&preview=true

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- 12 months ago
  
  Good piece here and he makes very good points. It is all a fraud. However, people in the US of A are starting to say enough is enough. We can only hope that this creates change that will lead to a open financial system and eventually to accountability.
  
  Good piece here and he makes very good points. It is all a fraud. However, people in the US of A are starting to say enough is enough. We can only hope that this creates change that will lead to a open financial system and eventually to accountability.
  Commented in: Economy
- Giorgio Bertini
  
  12 months ago
  
  Geithner-Summer trying to save banks will get the US into collapse, Obama will be the real lost. The hopes of millions and a whole generation are at stake. G20 and follow-up could ask Obama to save himself and his gov, saving the world of a collapse. The banks are not sustainable, they are just zombies. It is a matter of time. Lets wait for the spring social movements.
  
  Geithner-Summer trying to save banks will get the US into collapse, Obama will be the real lost. The hopes of millions and a whole generation are at stake. G20 and follow-up could ask Obama to save himself and his gov, saving the world of a collapse. The banks are not sustainable, they are just zombies. It is a matter of time. Lets wait for the spring social movements.
  Commented in: Economy
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Giorgio Bertini added to Globalization | Trade and Finance, The Radical Twine, Policy, Public Policy, Ch...Ch...Ch Changes, Finance & Economics, Accountability, Economy, Financial and Economic Global Crisis, *Changing America?, Economy, Politics, Stimulus, Economic, American Economics & the American Economy, Citizen Oversight, Global Economy, Activism, , Money and Investing, Mauro Magnani's FINANCIAL TWINE, Geopolitics 12 months ago