I am nothing to do with finance, and even little readjustments in financial arrangements stress me out- I even hate taking precautionary measures to my very basic financial set-up, like opening a second major bank account (why should I? Bank accounts are safe and boring, right?). So it's strange to contemplate that ever since the financial crisis even reared its head in 2007 I've been of the same opinion, which I am more and more convinced is the right one. You identify the dodgiest banks or sections of banks, liquidate them, hand on any left-over viable assets along with the accounts held in those dodgy banks to banks with a reasonable chance of survival having been less egregiously risk-oriented and bonus-fixated.
Here comes the difficult bit- you then identify the prime-movers behind the risk-taking and prosecute them for failing in their fiduciary duty to shareholders and for recklessly and knowingly defrauding the financial system. This last part is not covered by Roger Ehrenberg's post, but the first part is.
He concludes his post:
"sometimes the most complex problems can be addressed with the most simple solutions"
Hear, hear. I simply agree with him.
Sunday, February 01, 2009
Posted by ed thomas at 11:35 AM