Knights Who Say…

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Since the scariest part of the financial crisis abated — without any meaningful reform happening, I might add — we don’t hear much about the banks, anymore; therefore, there hasn’t been a new Knight since July.  Here’s a good one, though.

Over the weekend, former Fed chairman and supposed “Maestro” of the financial system Alan Greenspan caught up with me, Bernanke, Yglesias, Paulson, Spitzer, Klein, Volcker, Johnson, Bair, Kwak, Marshall, Wolf, A New Way Forward, and the Wall Street Journal:

If they’re too big to fail, they’re too big.

Took you long enough, Al, but welcome to the club.

Know what this means?  Every living Fed chairman says too big to fail means too big. All of them.  Even the current one.  All the way back to the Carter administration’s first appointee, William Miller, who died 3 years ago.

Every single person who’s been responsible for running our entire banking system over the past 30 years says the banks have to be downsized; there cannot be a financial institution that’s “too big to fail.”

Not that what I think makes any difference, but it seems to me a thing like that ought to set the media and the policymakers on their ear.

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2 Responses to “Knights Who Say…”

  1. jazzbumpa Says:

    And look where the bail-out money went.

    To enrich these thieving bastards.

    http://www.washingtonpost.com/wp-dyn/content/article/2009/10/19/AR2009101903546.html

    Everywhere you turn, you see another mechanism for transferring wealth from the have-nots to the haves.

    Student loans; pricey, trivial text book revisions; tax incentives; outsourcing; underemployment; bailouts.

    Cheers! (more or less)
    JzB the disgusted trombonist

  2. urbino Says:

    Yeah, there’s no word for it but “obscene.”

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