Hoenig Says Big Financial Firms (i.e., JPMorgan, Goldman, Citi) Put "Capitalism At Risk"

Tyler Durden's picture

So 3 years after bailing them out and making the Bernanke put the defacto trading policy of the MOMO/POMO generation, they finally realize they destroyed the system? Better late than never.


We can only hope a closer reading of the last bullet means that Hoenig is now pushing for an end of Glass-Steagall. Expect to hear bankers screeching about tanks in the streets and mass suicides if a repeal of Gramm-Leach-Bliley is even mentioned.

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MarketTruth's picture

And once the **statute of limitation** runs out on suing the banksters for their gargantuan fraud on investors…. what information will they finally release.

So what is the time limit in years to sue the banksters for fraud?

Ropingdown's picture

I assume Tyler meant "a return of" Glass Steagal.

Problem Is's picture

I had to read that one a couple of times myself... I bet Tyler types really fast, though...

What say you, Mr. Durden??

I am more equal than others's picture

'Fragility .... fragility.... all is fragility' quote Nassim Talieb evermore. 

redpill's picture

Thomas Hoenig or Jonathan Hoenig?  lol.


King_of_simpletons's picture

Too big to fail a.k.a Too big to fail us all.

Cognitive Dissonance's picture

Greece is the dress rehearsal for America after the Nov 2011 elections.

Arius's picture

did you mean 2012?

just to clarify... got to make my bets ... :-)

Cognitive Dissonance's picture

Do you mean that the Presidential campaign recently started won't end until Nov 2012?


Either 2011 was a typo, wishful thinking or a Freudian slip.

buzzsaw99's picture

LULZ, capitalism doesn't exist.

Michael's picture



There, fixed it for ya.

plocequ1's picture

Who's Hoenig? Thats right, Nobody. Do you know who i am?

bakken's picture

NO.  Who are you?  Hoenig, who is Hoenig?   More importantly, does he matter?

PulauHantu29's picture

Wait, I'm getting confused.

Did he say MOMO?...or POMO?...or MOJO?

lolmao500's picture

I would expect Hoenig to get kicked out instead of the gov doing really anything concrete against their masters.

williambanzai7's picture

Scurrilous varmints, every last one of em.

buzzsaw99's picture

there is no capitalism, there is only the bernank.

Zero Govt's picture

we all live by the economic rules of Capitalism, it's precisely what brought Capitalisms Grim Reeper to the USSR and the Eastern Block (there's only so long you can piss on productivity and profitability before they turn around and bite you on the arse!)

what Hoenig meant to say was Big Banking is putting Big Banking at risk ...2008 was 3 years ago, he's not exactly sharp as a tack is he?!!

DNB-sore's picture

Is he gone tagged "renegade"?

Bartanist's picture

Hoenig's statement should be pretty obvious. Capitalism is only stable with free markets and competition.

Unfortunately the oligarchs headed by people such as David Rockefeller have made it their mission to stamp out competition and free markets and globaize under the iron hand of elitist rule. Those that don't submit to the iron hand are killed; whether they be Muslims, protestors who gain a following or even presidents.

Their argument goes something like this: "Wouldn't it be better to have smart and successful people managing the world than having it in chaos, with constant fighting?" IMHO, the answer is: "In some ways yes, but in many ways no".

Unless people are mature enough to agree on a global system, it is the wrong system. People are familial and tribal by nature. Forcing something else will not work ... now. 

CulturalEngineer's picture

RE: "Expect to hear bankers screeching about tanks in the streets and mass suicides if a repeal of Gramm-Leach-Bliley is even mentioned."

As long as they're the ones committing mass suicide and the tanks are mowing down the walls around their estates I'm fine with it!

Bartanist's picture

Oddly enough, with the power of the media, police, government and miltary they have the power to stop tanks in the streets and mass suicides.

However, it plays to their self-centered benefit to not only predict chaos and death, but also to foment it.

If the time comes and it does come to pass, it will be easy to target blame on those with the power and who made the threats.

Cruel Aid's picture

Yea, Gramm escaped the scene of the crime in quite a hurry.

He is the Economist from hell and was the banking systems wet dream.

TooBearish's picture

In other news - 2yr note auction was a real barnburner - NOT!

Boston's picture

Buy on the dip.  The long trade will not be over until risk goes Kaboom.....sometime over the next 30-60 days?

doomandbloom's picture

capitalism is dead...no risk anymore...


proLiberty's picture

But these big firms do not practice "capitalism", nor do the politicians and government regulatory agencies who collude with them.  This is one be cabal of cronies.  When the Secretary of the Treasury can get the CEOs of the leading banks in one room and force them to accept hundreds of billions in government money, this is only "crony fascism".



Quintus's picture

... this is only "crony fascism".

Otherwise known as Corporatism.  Pioneered by Mussolini and now proudly championed by the U.S.A!

ivana's picture

no no no
they are replacing capitalism with fascism.
And it will backfire in their faces

slewie the pi-rat's picture

un-fuking believable!

turn out the lights if you're the last one to figure this out, ok?

Reptil's picture

regret, bitchezzz

Widowmaker's picture

What system?!! 

Doesn't Hoenig think that capitalism is record taxpayer-gutted bonuses for fraud and centrally planned markets in the name of incorporated personhood and the TBTF top .01%?

Perhaps higher police state concentration is needed to turn privacy and human dignity into a "free market."  I'm sure Hoenig would agree that assaulting freedom is good business!

buzzsaw99's picture

they win, we lose, that's capitalism?

Widowmaker's picture

You're making it complicated, there is no "we."

They win, and they win bigger = capitalism/God's work at the center of the universe.

We = piss.

Zero Govt's picture

We = piss

..so piss back

their entire business model rests on (i) being able to tax the nation and extract its productivity (wealth) and (ii) power over its means of exchange, money. That's what the founding of the Fed was all about, a night raid on Congress to push the vote through to establish the parasites ponzi scheme, a private monopoly on money called the Fed run/owned by parasitical bankers, JP Morgan et al

simply stop paying your taxes and their business model implodes, their power base (Govt) for extortion is bled dry, both in a matter of 2 to 3 weeks

was it Thomas Jefferson said all it takes for corruption is good men to do nothing? Actually what it takes is good men to be stupid enough to pay their taxes to fund the corruption that is Govt

"We" have (all) the power: just stop paying tax to the parasites institution.. Game Over

Cole Younger's picture

The banks can do only what the law allows them to do. Lack of law or a law created by purchased votes to allow banks to engage in certain activity that is wrong is 100% the politicians fault. The politicians are the creator of problems and everyone of them that is still alive (currently in office or not) should be publically hanged by the neck until dead. This should take place on the capital building steps.

Uncle Remus's picture

"Proles v. Pols" or "Swinging With The Pols". Bring your camera.

Clark Bent's picture

I prefer the backdrop of the burning Department of Justice building. Might as well use it for something. 

chunga's picture

America, the patient, is very weak and gravely ill, to the extent she now requires intensive care. While she lay dying on the operating table it is becoming painfully apparent that the environment in the operating room is septic. There are those who wish to see her survive and there are those who do not. In this medical metaphor, we are the surgeon, our understanding of how to treat the patient and the tools we use are not scalpels and sutures. The tools we use are laws and our ability to articulate them.

We have an epidemic on our hands. A plague. While the specific individual steps required to cure each patient may differ from the next, the pathogen is the same. Just as it would be irresponsible of a Chief Medical Officer at a hospital to realize a deadly plague exists, and to deny to all his surgeons their need to be aware of it – so it would be if a judge were to deny the fact we are suffering from a financial plague brought about by widespread deliberate indifference to the Law. Confining each individual case to the issues in the instant matter without considering that millions are succumbing to this plague, in increasing numbers, creates an impediment in our quest for a cure.

Those that do not wish to see the patients survive either the financial plague or my imaginary medical plague are at every crack and crevice of the operating room, relentlessly and remorselessly pumping pathogens towards the patients in an effort to further add to the sepsis. The surgery still needs to be performed individually - but it must be acknowledged that the waiting room is full of new patients.

To think otherwise requires a certain degree of genuine insincerity.

Kayman's picture

And attached to this dying patient is an enormous leech.

And the Head Surgeon is an American Politician.

Naturally, the Surgeon saves the leech.

chunga's picture

I'm afraid you're right and it is very sad to watch. Thanks for the reply.

Zero Govt's picture

the leech (and Doctor) can only bleed the patient while the patient is a comatose zombie... if said patient wakes up and walks out said Doctor and leech are f**ked

Stop Paying Your Taxes Zombies ...how simple can it be, how long to wake up from coma??

Robslob's picture

When the country decided to save be stock market instead of itself it was pretty much over right there...

The government seems to have the same confusion when serving corporations over the people that work for the corporations...but hey...maybe it is just easier that way and that's what they get te big bucks, premo insurance and awesome pension for right?

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

This is not our government.  95% of our congress has been bought and paid for by the corptocracy.  Our government has been hijacked.  Most of these demons are not "Americans".  They are globalists!


Tuco Benedicto Pacifico Juan Maria Ramirez

vamoose1's picture

beautifully stated,   tuco.   corptocracy,   thats new,  i will be stealing that...:)

kengland's picture

So said the drug pusher to the drug user

JW n FL's picture


Hoenig is no longer a voting member on the policy-setting Federal Open Market Committee. As well as attacking Dodd-Frank, he's been a persistent critic of the Fed's easy-money policies, warning they're likely to fuel asset bubbles and higher inflation. He's due to retire Oct. 1, after nearly four decades at the central bank.