27-09-2008, 03:23 AM
The more I think about this in the light of events over the ast weekend, then the more I begin to wonder if it wasn't the young Bush's version of his Daddy's Savings Loans "crisis" - i.e., the plundering of the S&L's followed by the taxpayer/state rescue. This time it was the trillion dollar wrapped-crap mortgage plunder.
Overall there have been some losers but by far the majority are winners. Six weeks ago Lloyds &HBOS were in merger talks, we now learn. They agreed that a merger/takeover would be a very positive thing and wanted to proceed but could not get past competition laws. These laws were thrown out last Friday. I think the general same picture is beginning to emerge with BOA/Merrill. Goldman's and Morgan's decision to become banks rather than remaining as investment banks may well be a long term strategy that is of benefit to them anyway.
the bottom line, as with the S&L affair, is that the taxpayer has picked up the bill. This could not possibly have been sold to the American public 10 days ago. It has taken a "financial 911" to achieve it.
The question therefore is whether the "financial 911" was an inside job - a 'bank heist' - or whether it was the perfect storm that has been reported?
Overall there have been some losers but by far the majority are winners. Six weeks ago Lloyds &HBOS were in merger talks, we now learn. They agreed that a merger/takeover would be a very positive thing and wanted to proceed but could not get past competition laws. These laws were thrown out last Friday. I think the general same picture is beginning to emerge with BOA/Merrill. Goldman's and Morgan's decision to become banks rather than remaining as investment banks may well be a long term strategy that is of benefit to them anyway.
the bottom line, as with the S&L affair, is that the taxpayer has picked up the bill. This could not possibly have been sold to the American public 10 days ago. It has taken a "financial 911" to achieve it.
The question therefore is whether the "financial 911" was an inside job - a 'bank heist' - or whether it was the perfect storm that has been reported?