Quote:
Originally Posted by iamwhatiseem
In all this bailing out - there has been no real discussion of how to fix the problem.
This bailout is akin to someone being rushed to the hospital with a severe cut that is bleeding profusely and all that is being addressed is replacing the loss blood. Even as the cut still lies open bleeding.
No one has even mentioned HOW TO FIX the problem.
Look - we had an economy that was overwhelmingly dependent on consumers borrowing more and more...the money being spent never existed....until finally enough of the borrowed debt exchanged all the hands it could go through until it eventually reared itself.
$700 billion will not fix the problem...it may however delay it for awhile.
|
Well people are talking about either adding new regulation or reforming the regulatory system without necessarily having more. These things are not as urgent as the immediate crisis and shouldn't be done too hastily. Goldman Sachs and Morgan Stanley have decided become bank holding companies which I see as a improvement since they will be less risky although less profitable as well.