Wednesday, March 4, 2009

Kramer blows, W.S. was responsible for giving value to toxic assets in the beginning so why are they denying their responsibility for doing it now?

Is it just me or does it seems as if, “Wall Street” is protesting to much? First there was Ratigan, Santelli, and now Kramer (all of which profited from our economic murder by being willing coconspirators who now only after the crime of uncensored and unlimited greed has been revealed claim only to be unwilling witnesses instead of their true role of being active accomplices. We all agree that something needs to be done to aid the current model of our national banking system, (aid not save because fundamentally the entire banking system and “Wall Street” both need to be re-regulated) but, “Wall Street” would have you believe that they were not culpable for the disastrous results of their actions. Remember that the only reason we have toxic assets on the books of these AAA credit rated entities is that “Wall Street” figured out a way to sell a valueless product by making it look profitable to theses AAA credit rated entities. “Wall Street,” in conjunction with “Banks” and other under-regulated or unregulated entities created (wrapped, bundled) and sold securities products that had no asset-backed value, which allowed banks to leverage their balance sheets “literally creating and assigning value out of thin air”. It is ludicrous now for “Wall Street” to request that the government fix the banking crisis when they are the engineers and reason for its existence. The government has no tools to remove private toxic assets from the ledgers of private unregulated institutions. If so tell me what those tools are. The government can infuse the liquidity that banks need to function until the “Banks” and “Wall Street” can resolve the toxic asset issue “more like unprecedented catastrophe” but that is all that it can do in this situation when the crisis originated in the private sector in an unregulated environment domestic in scope and largely international. What the “Fed” is responsible for is designing and implementing the regulatory structure/framework that the new economic system will operate under and this is what “Wall Street” fears, this is the uncertainty that they base their refusal to operate in the methods and modes of their responsibility to the capitalistic system by investing in the future of this nation, instead they sell and in the process sellout this economy all the while claiming that there is nothing worthy of investing in the economy, (when what they mean is that they cannot figure out what to invest in that would bring them the immediate profit margins that they were use to). They pine that there is no hope when faced with the very reality that they cannot make easy money in the unaccountable way that they had become accustomed to because the money party is over, but what gets lost in this whole thing is that they had no business giving this money party, thus they are the ones that should be responsible for cleaning it up. The government has no mechanism to clean up unregulated private toxic assets, it can stop this event from happening again in the future through applying regulation, it can keep the "Financial Industry" and also “Wall Street” short term on life support by supplying liquidity but "Wall Street" must start to stimulate the economy by initiating the investing in "America" instead of blaming the government for this current crisis. Wall Street's fears of future regulation is no excuse or substitute for not providing economic stimulation now, economic stimulus and funding is the purpose of Wall Street in our capitalist system that purpose is not the natural assignment of the government.

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