rc whalen's picture

The difference between the world when Volcker was Fed chairman and today is the end of Glass Steagall. Instead of bailing out simple lenders, the Fed now faces the task of managing and saving giant securities and securitization platforms that are too big to manage in a rational fashion. Don't fool yourself into thinking that JPM chief Jamie Dimon or any CEO of a TBTF bank has the slightest idea what is really happening within their enterprise.

asiablues's picture

The timing and haste of the newly proposed Volcker Rule by Obama has drawn criticism that this is simply a transparent attempt at populism in light of the Dems Massachusetts defeat. Moreover, it certainly does not address the more dire issue of the Middle America – jobs.

smartknowledgeu's picture

The Death of Capitalism

Bankers are destroying Capitalism. Unfortunately, most Westerners won’t realize this until five years from now, when the middle class has been forcibly relegated to the ranks of the poor. And this isn’t just a situation that will afflict America but it will likely afflict Japan and many countries in the EU such as the UK, Spain, and Greece just to name a few.

Bruce Krasting's picture

Tim and Barney - Adios!

Forgive me for a bit of a rant. I'm pissed. Any talk of addressing the problems at America's government mortgage lenders has been put on hold for another year. Why? Politics. The worst possible reason.

inoculatedinvestor's picture

Forget TARP, the AIG bailout and FDIC debt guarantees. The real bank bailout lives on courtesy of Helicopter Ben’s zero interest rate policy. Why should you care? Because low rates punish savers in the name of nursing the banks back to health. After all the trouble the banks have caused over the last 2 years this just adds insult to injury.

Econophile's picture

Avatar: The Philosophy

Q: Is Avatar a metaphor for "capitalism?" A: Yes, in James Cameron's populist vision of "capitalism." Q: Is the rape of another planet capitalism? A: No. Q: Is the movie left wing Hollywood schlock propaganda? A:Yes. Q: Is the movie marvelous entertainment? A: Yes. Q: Is it also something else? A: Yes.

Reggie Middleton's picture

Well, it looks like Blankein, Dimon, et. al. really should have tried harder to make that meeting with the President a couple of weeks ago. It appeared as if he may have had something important to discuss. Here is a clear break down of the how much principal and prop trading adds to the top and implied bottom lines of Goldman, Morgan Stanley, JP Morgan and Bank of America.

madhedgefundtrader's picture

With regulation rising, fees shrinking, and taxes about to take a quantum leap up, who needs it? The scapegoating and demonization of hedge fund managers. Why become a witch, just as the Salem witch trials are starting? Have they no shame? You might as well pour sugar in the fuel tank of my Gulfstream.