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Originally Posted by Lamplighter
Thanks Zen, that is a great link
Can't say I understood all first part about Europe, but the part on the US made sense.
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Understand the underlying concept. Some industries can prosper with less regulation. Finance is not one of them. We created all these problems by deregulating the finance industry. That industry can never have enough regulations. In part, because the industry believes profits - not the product - are the only purpose of a business. Because the finance industry and the mafia share a common belief.
I routinely ask bankers about Glass-Stegall. Not one knew what it was. What it did was address a fundamental problem when commercial banking and investment banking is in one house. They learned that the hard way in the 1920s. Due to so much education only from soundbytes, we must now learn that all over again.
BTW, I do not see why what applies to Europe is any different then what applies to America. Had you been following what was posted before George Jr administration all but created this recession, then you knew about Basil I. And why George Jr, et al were doing everything possible to keep it out of America. Basil I and II would have sharply blunted a financial crisis and that absolute resulting need for TARP.
Also not mentioned is what should be standard in all financial industries. All contracts should be traded on open markets. No most secret SIVs and CDOs. Transparency is critical to a responsible economic system. All those secret back room deals are whey Greece could pile on debt without anyone knowing how bad it was going back to the 2000 Olympics. Bankers don't like transparency. Then they cannot skirt the law.
Long Term Capital Management was another example of secret money games to enrich the rich. That also cost many Cellar Dwellers their jobs. Anyone concerned about their decreasing standard of living would know why LTCM simply warned of what was coming. And what happens when the elitists, using a propaganda machine, keep us all ignorant of what almost happened. Propaganda machines including those from Berlusconi of Italy and Murdoch.
But again, we cannot ever over regulate the finance industry. Due to an embedded concept routinely taught in business schools. That a business only exists for its profit. Also called corruption. Basil x (which every adult should have known about) requires transparency and reserves greater reserves behind questionable transactions. Everyone should have known why the Basil regulations are so important to the economic welfare of common Americans (at the expense of the uber-rich).