Comments on: The ‘Volker Rule’ http://www.lawrencegmcdonald.com/2010/01/the-volker-rule/ This is the official website for the best selling author of "A Colossal Failure of Common Sense." Fri, 30 Jul 2010 08:44:05 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Bruce sarum http://www.lawrencegmcdonald.com/2010/01/the-volker-rule/comment-page-1/#comment-1467 Bruce sarum Tue, 16 Feb 2010 07:23:59 +0000 http://www.lawrencegmcdonald.com/?p=1265#comment-1467 In the American Cowboy Banking system you don't need brains or banking qualifications. All you need a criminal bend, you create a bank which is too big to fail, which becomes a systemic risk to the whole economy, and then you hold the government to ransom for hundred of trillions of dollars, if the ransom is not paid, you screw the economy. It is the simplest and sweetest way of making mega bucks. You don't even need to have a casino capitalism. In the American Cowboy Banking system you don’t need brains or banking qualifications. All you need a criminal bend, you create a bank which is too big to fail, which becomes a systemic risk to the whole economy, and then you hold the government to ransom for hundred of trillions of dollars, if the ransom is not paid, you screw the economy. It is the simplest and sweetest way of making mega bucks. You don’t even need to have a casino capitalism.

]]> By: David http://www.lawrencegmcdonald.com/2010/01/the-volker-rule/comment-page-1/#comment-1453 David Sat, 13 Feb 2010 16:09:33 +0000 http://www.lawrencegmcdonald.com/?p=1265#comment-1453 Larry, Thanks again for the book. Your continued sharing is much appreciatated. At this stage I am reservedly optimistic that the issue is being addressed. I am of the opinion that Volker is correct in asserting that the best thing to come from the banking system in the last 20 years is the ATM. GM's foray into the mortgage market only reinforces the insanity of what took place< not to mention what the Special Products guys at AIG did. It was as if securitization was a crack epidemic. A brilliantly conceived idea at the time, but one that had a dark side that few realized until everyone was on the pipe. It could be argued that it wasn't the "fault" of the financial system that they did what they did. They were simply doing what they, and their "animal spirits" were driving them to do and what the system ALLOWED them to do. I actually accept this on one level. On another level I also recognize that for any civil society to flourish the citizens in it have to curb or regulate their most base of instincts and drives for the sake of the society as a whole. If all of the affairs leading up to the fateful week in Sept. 2008 doesn't illustrate the limits of unfettered and yes unregulated animal spirits, then for those who can't see it I fear you are blind. Innovation is not sacrificed or stifled when we regulate these base instincts no more than speed limits affect our commuting time on the Long Island Expressway or the NJ Turnpike or where ever else. Certain behaviors have to be checked for the sake of our civil society. The removal of Volker (a guy with a healthy amount of sketicism) was, to me the beginning of this process. The repeal of Glass-Stegal was fuel on the fire. I try to keep an open mind but the facts simply dont allow me to ignore the obvious. -D Larry, Thanks again for the book. Your continued sharing is much appreciatated. At this stage I am reservedly optimistic that the issue is being addressed. I am of the opinion that Volker is correct in asserting that the best thing to come from the banking system in the last 20 years is the ATM. GM’s foray into the mortgage market only reinforces the insanity of what took place< not to mention what the Special Products guys at AIG did. It was as if securitization was a crack epidemic. A brilliantly conceived idea at the time, but one that had a dark side that few realized until everyone was on the pipe. It could be argued that it wasn’t the “fault” of the financial system that they did what they did. They were simply doing what they, and their “animal spirits” were driving them to do and what the system ALLOWED them to do. I actually accept this on one level. On another level I also recognize that for any civil society to flourish the citizens in it have to curb or regulate their most base of instincts and drives for the sake of the society as a whole. If all of the affairs leading up to the fateful week in Sept. 2008 doesn’t illustrate the limits of unfettered and yes unregulated animal spirits, then for those who can’t see it I fear you are blind. Innovation is not sacrificed or stifled when we regulate these base instincts no more than speed limits affect our commuting time on the Long Island Expressway or the NJ Turnpike or where ever else. Certain behaviors have to be checked for the sake of our civil society.
The removal of Volker (a guy with a healthy amount of sketicism) was, to me the beginning of this process. The repeal of Glass-Stegal was fuel on the fire.
I try to keep an open mind but the facts simply dont allow me to ignore the obvious.

-D

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