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What went wrong to produce the worst financial crisis in the past 70 years?
went off the gold standard ..used keynesian economics to justify monetary expansion.
regulatory agencys were bought off sold out .. and were corrupt.. politicans as usual looked out for their selves and the people who bought them off.. the cuture of war,, and government deceitl
used propaganda to turn the population inot herds of lemmings..
the fed reserve was a unneccesary adjundt to mislead the world ..
if i have control of the money i could care less who makes the laws
you could care less but you choose not to.
>went off the gold standard
Gold-standard produced some of the worst bouts of continued deflation AND also inflation. Read some history books instead of Schiff / Paul / blathering net-idiots to understand why.
>used keynesian economics to justify monetary expansion.
Sigh. Have you ever read a single piece of Keynes? Do you understand the difference between the modern faux-keynesian and the writings of Keynes. Go back, read a book, educate yourself.
>regulatory agencys were bought off sold out
I would add that they were silenced effectively by those in power. So politicians were bought, who then in turn silenced or made ineffective the regulatory framework.
>used propaganda to turn the population inot herds of lemmings
One only gets what one deserves - although the teachings of Edward Bernays might have helped.
>fed reserve was a unneccesary adjundt to mislead the world
adjundt? unneccessary? Does not compute.
>if i have control of the money i could care less who makes the laws
Two penny misquotes do not systemic understanding make.
People - don't take the net board drivel as gospel. Educate yourself. Use intellectual self-defense.
Otherwise you'll just go from a frying pan into the fire : from one brain-washing truth to the next.
THINK FOR YOURSELF. Read history. Ask: cui bono.
Do you disagree with an asset backed currency? What do you propose as ideal?
Granted we aren't using pure Keynesian economics, can we agree that we've employed 'bad' economics and move on?
/agree again, but you can't expect everyone to be a critical thinker. Some of our fellow humans are um...yea...
/agree he poorly phrased it, although he was quickly summarizing. do you promote the debt/money system and generally support our central banking system?
are you mocking him here? surely you appreciate and acknowledge the concept that money = control in this world
I'm curious to read what your Edward Bernays has to say, but I think you were a bit harsh on this poster. I consider myself no lemming, I'm only neck deep in the rabbit hole. However, I'd like to know what you think put us in the shitty mess we find ourselves in today.
Hey, Dudley - Talk is cheap.
"Many steps are needed to make financial institutions and infrastructure more robust." How come prosecution is not one of those steps?
Hey Dudley, why don't you tell us about your personal role in the financial crisis in 2008. You can start with your role as Geithner's accomplice at NY Fed. Then you could tell us why Stephen "no conflict of interest" Friedman and Geithner fought for your promotion to replace Geithner as NY Fed President. Geithner argued that Friedman needed to remain chairman of the N.Y. Fed board to find a suitable replacement for Geithner as he moved on to be secretary of the Treasury. Geithner and Friedman insured that William Dudley, former Goldman Sachs executive, got Geithner's job of NY Fed President. Stephen "no conflict of interest" Friedman was chairman of the search committee, and Geithner lobbied the NY Fed to appoint Dudley-do-right-by-Goldman-Sachs as NY Fed President.
Prosecution?Yes, that would help a great deal indeed.And how about fining everybody involved at a truly apocalyptic rate?The hell with taxing bonuses...fine the bastards for the systemic damage they caused.Liquidate all of their assets, ban them from the industry and sentence them to work at a fast food counter for 10 years, with 5 years of prison for every time they mess up on the job.Yes...I would like to see that!!!
......Dude Dudley says " macroprudential supervision " is the better answer.
Too funny. A new choir song for non-regulation that will be lapped up by the choir only.
In other words.....In a financial world buried under tons of bullshit, the solution is to sling more on top of it and bury it deeper.
The" macroprudential supervision " needed to reform the Fed and U.S. financial system is " macroprudential supervision " provided by state and federal prison guards over the 20 years-to-life hard time prison sentences for the hundreds of criminals in Wall Street RICO crime syndicate including the mortgage industry, rating agencies, the Fed, Treasury, SEC, and Congressional aiders and abetters.
as brian wilson said, wouldn't it be nice.
Howabout we start by mandating open books, transparency in all instruments, leverage limits, automatic jail time for breaking banking rules and reducing the size of the financial industry 75%?
THAT oughta do it!
I find it most interesting that the assumption here is not that poor policies of the Federal Reserve, including a failure to anticipate the effects of gunning the markets and eliminating the notion of moral hazard from the marketplace, culminated in a widely anticipated and destructive collapse in the markets, but that it was the fault of the regulators to not put into place some kind of stop to the action.
The regulators have been successively defanged by the Clinton and Bush administration, and by many indications Obama looks to be following suit. Most of this came at the behest of the banks and other financial institutions, of which FOMC is largely comprised. Somehow it's hard to see Dudley as being a credible person to being laying blame.
What a joke--
we have no better mechanism for dealing with the next financial crisis than we had 2 years ago--
Because they want to just throw money at it in the middle of a crisis when there is no time.
"Although the raging crisis appears to be over, our work is not close to being complete"
Mr. Dudley, did you know you do not have the biggest dick in the world, and that biggest dick in the world is in need of a massive dose of Viagra.
I think this is easy to sum up: we were caught totally unawares, golly gee!And we have more to do by gosh!
Well, since you were with Goldman Sachs, you really needn't ask.
Where are we now?
Under investigation or so I hear.
What should be our top priorities to ensure that this never happens again?
Kill the beast.
Dudley - you should lay off the pot.
Whenever there is a financial crisis the solution is always simple and always the same. Dump money out of helicopters directly into banker bonus pools.
Beware of any person who uses the word "robust".
More volume please
Delist ... Delish ... C at One
The only way to do that would be to immerse the HFT platform in liquid helium and use superconductors for the connection to the exchange.I think they are working on that.....
'Change the system so that no financial firm is "too big to fail."' ... That's easy let C fail and everyone will sit up and take notice
They could do it in 2 ways: let one fail to set an example, or slice and dice all the risky ones into smaller pieces.
So there is a rumor Iran will demand gold for their oil or peg their oil to the yuan on February 11. Any thoughts?
"or peg their oil to the yuan"
Uhhh... Isn't that the same as pegging it to the dollar? What's the news?
Question...will we still be assured of a robust and resilient system as the Dow approaches 3k?
roflmao, commona man intepretation, So too prevent problems, we should do our jobs, you know the jobs we were suppose to do and did not.
Jeeze, makes me more bearish.
When you're mea culpa is full of "we didn't know" and "robust whatever BS", you know biz as usual
Was it not widely assumed that the TP subsidized rescue of Bear Stearns was really a rescue of JPM's tri-party repo operations? JPM and BNYMellon both were facing a crisis. Creating the impression that it was about Bear Stearns was successful. So too, the impression that AIG's rescue was about "millions more jobs lost and thousands of factories closed" rather than about GS may also succeed. Why Geitner gets away with vague and exagerated hand-waving (no detail), when the "bail out the CDS purchasers" was so clear, stuns me. The PR technique, though, is well-established, gets Congress off the hook apparently, and befuddles the average MSM viewer. Interesting that bankers sans-regulation are viewed, even by Dudley, as inclined to race to the bottom. With TP backstops, why not? They didn't race to the bottom 40 years ago, as partnerships.
He has a dog named Minsky.
Did Dudley Do Rite really finger Apalachin New York as his first choice for the meeting site? The board must have voted that choice down after finding out that the most significant outcome of the first Apalachin meeting was that it helped to confirm the existence of a National Crime Syndicate.
The Average American lost 40% of his retirement savings in the collapse, I'll wager Dudley and his companions made money on it.
His little discussion fails to account for the Fed's role in all this, proposes an enhanced structure that smells a lot like the mess we here in the US call the DHS, puts forward a lot of solutions without addressing the nuts n bolts of how it will all get done (which it never will), and suggests that the crisis is actually behind us at this point.
I really get offended when after-the-fact we hear all about the shoulda woulda coulda things that weren't there when they were needed. I'm especially offended by the, "Extraordinary interventions of governments and central banks around the world were necessary..."
Slightly OT, but everyone should vote for the dynamite prize as there are some worthy candidates:
The world financial system got the blue screen of death.
Nice. 5 stars!
Translation for Joe 6Pak:
What caused the problem?
The clown car was overloaded and ran out of gas. But we filled the tank with pure ethanol, kicked out the Lehman clowns and now we are good to go. (Even though the remaining clowns gained a bunch of weight.)
What do do?
We admit we didn't have a clue last time around, but now we do. Trust us. We are going to look busy and try all kinds of shit this time.
One would think that people attending an octuple-secret meeting of the controllers of the world, people who were truly interested in solving intractible problems, would look toward out-of-the-box thinking. Not purely predictable more-of-the-same wrongness.
There are three possible conclusions I can come up with: they aren't interested in solving the problems, they're idiots, or they are trying to provoke someone else to 'provide' the solution.
It's time to take the keys away from the central bankers. The objective of the central banks - and of public policy generally - should be to secure an economy which provides optimal economic returns for the people of the country. It should not be to provide for the security and profit of the financial sector at the expense of the rest of the economy and the taxpayers.
Dudley's remarks convince me further that the Fed has completely lost the plot of what it means to serve the public interest.
I don't know how it can be done, but control of the money supply and allocation of scarce capital from taxpayers to Wall Street cannot be trusted to these jokers anymore. And other central bankers should actively disown them and publicly deride them.
remind me what happened to america's first and second central banks?
I don't know what 'optimal economic returns' means, but the objective should be to protect freedom and individual rights. Any objective that smacks of 'taking care of the people' is doomed to failure from the outset, whether via corruption or unintended consequences. Policy should take care of rights, people should take care of themselves. I'm tired of Father Knows Best...I think we've seen once and for all, He Doesn't.
Central Banks need to die, the sooner the better. Return economics to the free market.
Health Care is the full time focus of the government so there can't possibly be any problem that's more pressing.
"With respect to what went wrong, it is important to recognize that the financial crisis occurred for a host of reasons and, thus, there is no single silver bullet to avoid such crises in the future. At the heart of the crisis was a tremendous buildup in leverage, which our regulatory framework failed to prevent."
LOL regulation doesn't prevent it. Using an INCORRECT high interest based model to represent underlying devalueing assets and then over producing ficticious money to compensate for it is what caused that little snafu. It's built into the cake. You know. I know it. Stop feigning ignorance.
Procecute all participants, sieze their assets using asset forfiture due to fraud. Return to the victims what was stolen. Hang those who have caused death. Return to Constitutional money. Happy days are back. The planet will not miss them.
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