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Virtually All Independent Financial Experts Say that the Size of the Big Banks Is Hurting the Economy
Here's my updated list of top financial experts saying that the giant
banks are too big, and that their very size is hurting the economy:
- Nobel prize-winning economist, Joseph Stiglitz
- Nobel prize-winning economist, Ed Prescott
- Nobel prize-winning economist, Paul Krugman
- Former chairman of the Federal Reserve, Alan Greenspan
- Former chairman of the Federal Reserve, Paul Volcker
- Former Secretary of Labor Robert Reich
- Dean
and professor of finance and economics at Columbia Business School,
and chairman of the Council of Economic Advisers under President
George W. Bush, R. Glenn Hubbard
- Former chief IMF economist and economics professor Simon Johnson (and see this)
- President of the Federal Reserve Bank of Kansas City, Thomas Hoenig (and see this)
- President of the Federal Reserve Bank of Dallas, Richard Fisher (and see this)
- President of the Federal Reserve Bank of St. Louis, Thomas Bullard
- Deputy Treasury Secretary, Neal S. Wolin
- The President of the Independent Community Bankers of America, a Washington-based trade group with about 5,000 members, Camden R. Fine
- The Congressional panel overseeing the bailout (and see this)
- The head of the FDIC, Sheila Bair
- Former Tarp overseer and creator of the Consumer Financial Protection Bureau, Elizabeth Warren
- The head of the Bank of England, Mervyn King
- The leading monetary economist and co-author with Milton Friedman of the leading treatise on the Great Depression, Anna Schwartz
- Economics professor and creator of the "efficient market hypothesis", Eugene Fama
- Economics professor and senior regulator during the S & L crisis, William K. Black
- Economics professor, Nouriel Roubini
- Economics professor, James Galbraith
- Economist, Marc Faber
- Professor of entrepreneurship and finance at the Chicago Booth School of Business, Luigi Zingales
- Economics professor, Thomas F. Cooley
- Economist Dean Baker
- Economist Arnold Kling
- Former investment banker, Philip Augar
- Chairman of the Commons Treasury, John McFall
- Leading bank analyst, Chris Whalen
To see why these experts say the giant banks need to be broken up, see the explanation here, after the list.
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No Krugman?
Actually, I added him ... Thanks.
;-)
I think it's already to late to do anything about it. We have debased our currency and debased our credit alot sooner in order to protect the 2 handfuls of individuals who needed their banks bailed out. We would have imploded eventually but the banks have sped up the process.
Yeah, but where did those independent financial experts get their PHD's? Are they even supposed to be commenting on financial matters?
Alex Zhyk may remember that more than 20 years ago another empire imploded with bond defaults and military excesses. Now our big bankers are doing the same with capitalistic credit excesses along with military excesses in same geographic region. Ironic capitalism began degenerating after celebrating its victory . Iam planting beets and harvesting mushrooms.
Now, that's a surprise. I wonder why nobody was talking about this 10 or 15 years ago? You don't have to be Einstein of economy to figure this out. I guess the idea of capitalism degenerated in peoples brains at leas few generations ago. Well now looks like everybody will have to return to the very basics. I am planting carrots. Who grows the rabbits?
every single tbtf bank should be liquidated, dismembered, or re-organized into safe to fail banks....and i don't even buy the argument that any were so large that they could not fail....
the long term pathologies of allowing these corpses to rot in open air is far greater than the costs of failure....those over educated monkeys have destroyed the economy with their foolish mindless greed and it should be made an open laughing stock....
the only thing that will stop the madness of the banksters is transparency...the more they have to break-out their numbers the more they will be forced to run their various operations in a more ethical manner. Someone, think dumb regulators, has to really understand how VAR, and other metrics common to valuations within these complex balance sheets. But hey, we've got TBTF and understanding systemic risk in the new financial reform bill, why should anyone be worried?
your friend,
alfred e. newman
So now bureaucrats, central planners, and career academics (who haven't worked in the real world) are "financial experts"? News to me.
Horses Jamie Dimon and Lloyd Blankfein were unavailable for comment.
Congressmen unwilling to comment until their Overlords in NY give them a script.Home
Damn...update from Markets entity...Too many immediacy values with too high sums in the impact, duration, and tension levels to ignore so had to stop work to extract and post the update below. Rest of the report better not be like this or it will take forever....
Extract from upcoming Shape Report: Markets entity:
As 2010 fades rapidly from sight, and mind, we note that the Markets entity is pretty much as its primary supporting descriptors would have it, a [basket (of) crises]. The [basket-case markets] set has secondary support coming from [interwoven] and [inextricably twined] which are themselves both supported at their primary levels by [bad foods] which, given its supporting sets, we are interpreting as [indigestible products]. These [indigestible (financial) products] are about to make [minions (within markets)] go into [spasms] of [violent puking]. This is indicated to be a [planet wide] level event, that in its turn brings [international grievances] and [inter country tensions] to a [visible] and [frightening] level that will be described (in the msm propaganda press) as being a [boil over] situation. The interpretation that we have about the [indigestible products] is that they fall into the category of [derivatives] in general, but specifically there are linguistics around the idea of a [gold price tied/bound] form of [derivative] that [fails] in an [instant] due to a [crisis] in the [gold/precious metals market]. This forecast is based on a lot of immediacy data value sets and so may be within days of happening, and likely will be occurring by the time that this Shape report is published.
clif
January 11, 2011
Clif,
That is both deadly serious and hilarious at the same time...
If a gold-themed derivative is found to be indigestible ... yeah, that would be big!
I'm not sure what to make of that one. Food supply connotations as well as markets perhaps?
I'll know it if I ever see video of traders puking on the trading floor. Hopefully, it will be Cramer who stars in it.
AB are you a bothead too?
Michael Hudson?
Link, please?
It's not entirely about being to be big to fail...it's also about the understanding of fiscal responsibility, in this particular era it's about having an extremely unwise set of thinking minds at the helm. ..It's difficult to have a private banking system where certain private corporations are NOT too big - it's just difficult. ..In my opinion, the problem is that there's an incapacity for thinking big. When you're a big bank- neccessarily you have to make money at the 3% level, you can't be hedge fund like Goldman...it just introduces an unacceptable level of risk - this is self-evident.
But it is worth noting; the collary of TBTF is that these banks were not encouraged to call in their risk-management provisions, they were bailed out! This also destroyed the equilibrium in financial markets. ..I don't think we can get rid of TBTF -and the odious, venal tentacles they send through society - but we may abolish the private dimension of the Fed; it's a compromise but it should probably be done. IT's either that, or one way or another the TBTF will be recapitalised at arms length from government, sounds ridiculous but it will happen. reforming the Central bank protects Security interests, maintianig the Fed protects Oil interests... each side will discreetly gather industries under its wings.
They suck productive capital out of the system and return little value. How'd I do?
it doesn't take a lot of top experts to see the obvious.
http://covert2.wordpress.com
You don't have to be a huge bank to rape shareholders, US taxpayers and the FDIC.
Small banks like this are rife with loan fraud,just like the big boys.
Usually commercial loans. Without securitization returning for the short term(5/30 terms)loans we will have a rolling crapout of small community banks for years to come.
a humorous vignette.
http://www.youtube.com/watch?v=AMUKvI2Ywjs&feature=related