"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Friday, May 21, 2010

Dylan Ratigan: "A Call To Action" and James Grant Editorial: The best financial reform? Let the bankers fail

Dylan Ratigan's call to action. Grab a pencil and get ready to email your representative. This clip is 3 minutes and well worth it! Do your kids and grandkids a life changing favor, contact your representative.

By James Grant
Friday, April 23, 2010
The trouble with Wall Street isn't that too many bankers get rich in the booms. The trouble, rather, is that too few get poor -- really, suitably poor -- in the busts. To the titans of finance go the upside. To we, the people, nowadays, goes the downside. How much better it would be if the bankers took the losses just as they do the profits.

Happily, there's a ready-made and time-tested solution. Let the senior financiers keep their salaries and bonuses, and let them do with their banks what they will. If, however, their bank fails, let the bankers themselves fail. Let the value of their houses, cars, yachts, paintings, etc. be assigned to the firm's creditors.

Of course, there are only so many mansions, Bugattis and Matisses to go around. And many, many such treasures would be needed to make the taxpayers whole for the serial failures of 2007-09. Then again, under my proposed reform not more than a few high-end sheriff's auctions would probably ever take place. The plausible threat of personal bankruptcy would suffice to focus the minds of American financiers on safety and soundness as they have not been focused for years.
Link to Jim Grant's Editorial and worth the trip



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