Legal Commentary

The Importance Of The Financial System (As Opposed To Banks)

By Big Tent Democrat

Ian Welsh writes:

The refusal to make [banks] take their losses; the refusal to wind up any of the big banks; the refusal to recognize that what is important isn’t the banking system but what the banking system does, and thus the unwillingness to cut past the big banks and lend directly means that those trillions of dollars of losses are going to have to be paid back by consumers and taxpayers. You will pay. You will pay not just in high interest rates, but in lower wages, and for many of you, a lack of jobs. The economy will not, before the next recession after this downturn, return to the same level of employment the US had before this crisis. All of this because neither party, and neither President, had what it took to stand up to the banks.

(Emphasis supplied.) This very well could end up being President Obama's lasting legacy - his horrendous policy regarding the financial crisis.

Speaking for me only

Full post as published by TalkLeft on May 15, 2009 (boomark / email).