Not All Bankers Are Liars
The Market Ticker ® - Commentary on The Capital Markets
Posted 2009-06-20 18:47
by Karl Denninger
in Banking System
Ignore this thread
Not All Bankers Are Liars
 

Here 'ya go:

Five minutes, roughly.

Let's recap Rusty's points, which I have repeatedly made since this crisis began, and if you look at the last two+ years of The Ticker, you'll see the same things being said:

  • "We saw this coming in 1999 with the passage of Gramm-Leach-Bliley"
  • "Financial institutions were doing raptures in Enron and doing the same thing with SIVs in off-balnace-sheet accounting"
  • "Unless they break up the big banks, we are going to relive this over and over again"
  • "Free enterprise has to have the right to fail"
  • "This was a disaster put together in 1999"
  • "We haven't solved the problem"
  • "Alan Greenspan had some problems here; Greenspan let Citicorp merge with Travelers even though it was illegal at the time he did it"
  • "They get the gain and we get the pain"
  • "When you have companies running wild such as you had with Enron (and Worldcom), and subprime lending and all, we have to live with CRA and all while they don't care"

By the way, if you're a "credentials guy", Rusty is a former Federal Reserve board member.

So folks, how much more of an authority do you need than a former Federal Reserve board member and the head of a significant regional bank?

Still think this is a partisan issue?  We've had a Democrat President and a Republican Congress, a Republican President and a Republican Congress, a Republican President and a Democrat Congress and now a Democrat President and a Democrat Congress. 

All possible combinations have been present during the genesis and unfolding of this mess and not one has stepped forward to put a stop to it.

Are we the people still going to sit on our butts, ten years after the fine folks who are "in charge" sell us down the river and we get the consequences, irrespective of whether we're Democrat or Republican?

What's that old Einstein definition of insanity again?  Oh yeah:

Doing the same thing over and over but expecting a different result.

Discussion below (registration required to post)
 

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User Info Not All Bankers Are Liars in forum [Market-Ticker]
Phantomace
Posts: 6393
Incept: 2009-03-16
Green A True American Patriot!
Las Vegas, NV, and your screen
Online
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Video linkie no workie...

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"That was a little trick I call math. Oops, now I'm not emotionally invested..." - Dilbert
The only good thing I have to say about Barney Frank is at least he's not breeding...
Housemouse
Posts: 61
Incept: 2009-03-18
Green
Western New York
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Video worked for me, and thanks for the info, Genesis.
Phantomace
Posts: 6393
Incept: 2009-03-16
Green A True American Patriot!
Las Vegas, NV, and your screen
Online
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It's coming up now, didn't the first time, weird.

----------
"That was a little trick I call math. Oops, now I'm not emotionally invested..." - Dilbert
The only good thing I have to say about Barney Frank is at least he's not breeding...
Karefree
Posts: 1700
Incept: 2008-10-15
Green
Nor Cal
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three tickers on a Saturday?!

Gen - try and relax some..

smiley

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Matthew 6:21 "For where your treasure is, there your heart will be also"
Ponzi_unit
Posts: 8094
Incept: 2007-09-05
Gold
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Quote:
Still think this is a partisan issue? We've had a Democrat President and a Republican Congress, a Republican President and a Republican Congress, a Republican President and a Democrat Congress and now a Democrat President and a Democrat Congress.

All possible combinations have been present during the genesis and unfolding of this mess and not one has stepped forward to put a stop to it.


This is one of your best ever quotes Genesis. I'm going to borrow this one.

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Taxpayers witnessed a crime and stayed around long enough to get charged with it.
Etz
Posts: 13888
Incept: 2007-06-26
Silver
LA
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Dick Fuld and John Thain wave their left hands from an Azimut 98 as they cheer and whisper,

"Great Job Dusty" smiley

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Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora.

Goldie
Posts: 281
Incept: 2008-08-02
Green
North Carolina
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CNBC will probably never have that guy on again. That was way too much truth for one segment.

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Total destruction the only solution

~Real Situation by Bob Marley
Psquared
Posts: 1876
Incept: 2008-10-11

SE USA
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I bet I could walk into a regional bank around where I live and "if" I could talk to the bank CEO/President, they would say the same thing. There is no dearth of people making these points (and they, along with Gen, have been making them for a long time) it is just that no one listens.

How many mega-banks do we have now?

C, JPM, BAC and WFC. Look what is inside each of those banks. BSC, MER, WB, WAMU, INDYMAC, and others ... these are entities which NO longer exist. So too big to fail has become even bigger with no end in sight.

I'd like to think Rusty is predicting the future when he says these banks need to be broken up but it just isn't going to happen. These 4 guys will be given anything and everything they need to survive and will go right on taking risks until the law is changed.

Oh, and did you catch the part about regulators. He has 13 regulators and doesn't need a 14th; he just wants the ones already around to do their job. (reading between the lines)

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"Our Constitution is designed only for a moral and religious people. It is wholly inadequate for any other." ~ John Adams
Jinroh
Posts: 779
Incept: 2009-05-05

Room 101
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I was thinking the same thing when I watched it ! I am shocked they allowed him to speak the truth. 0.o

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Constitution Class taught by Michael Badnarik :
http://www.archive.org/details/Michael_Badnarik
I say we take off and nuke the entire site from orbit. It's the only way to be sure.
Dashingdwl
Posts: 9752
Incept: 2007-06-26
Gold
los angeles
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Whatever. Midsouth Bank has a market cap of 112.51M. Take any three managing directors at Goverment Sachs and their bonuses will be large enough to buy the entire Midsouth Bank. Ol' Rusty is*****ed he's not a Goldman.
The government decreed that everyone at GS will be rich, even if it impoverishes America. And we sheeple will sit here and do nothing.

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When you are hard and disciplined, you can be principled. People fear you because they have no leverage against you. It's the truest form of Liberty.
Throxxofvron
Posts: 10315
Incept: 2009-02-17
Green
Hyper-Speculative Psycho-Facsistic Parabolic Blow-Off
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It is incomprehensible to Me that competitors to these propped companies have not challenged the 'TB2F' mantra.

Obviously Independent Private Businesses cannot realistically compete with .gov financed institutions prioritized as systemically/politically important.

In many cases the failure of These mismanaged Institutions would have provided opportunity for positioned solvent Institutions to procure assets and market share from the failures.

The anti-competitive anti-capitalistic nature of .gov intervention, and the inhibition against responsible regulation and oversight; are both illegal and unethical activities, inconsistent with free markets and free societies where laws are uniformly enforced, and profit and loss are both irrefutably legally private.

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DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell

Financeguy
Posts: 5283
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Green
Charlotte
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Rusty is a banker. These ****s at Goldman and the TARP banks are con men....It really is a simple as that......

I have worked with many bankers and con men over my career and can easily tell the difference.....
Templar223
Posts: 779
Incept: 2008-04-28
Green
Champaign, IL
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Quote:
Are we the people still going to sit on our butts,


Yep, excluding some here on TF.

Meanwhile, GS is paying out HUGE bonuses on the money they skimmed off from the Fed.

Gotta love this ****.

Otherwise it would eat you up.

J
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