CNN offered this view of the hearing..
http://money.cnn.com/...
The Nation has this observation regarding a restructure of the response to the economic crisis, by Zephyr Truthout
http://www.thenation.com/...
Video provided here..
http://budget.edgeboss.net/...
Stiglitz described how "the big banks ... tried to shape the view that there is no alternative than throwing [them] massive amounts of money." But he--and Johnson--also talked about how the revolving door between wall street and government is a real problem because of mindset, not just greed. If someone has "grown up" in the culture of big banks, he said, "they see things in this very peculiar way ... we've seen some outstanding examples of that" in this crisis. "We've seen all our regulators get captured," said Johnson.
CNN reports this..
The Obama administration must break up the biggest financial firms if the nation is to return to economic health, three prominent bailout skeptics told a congressional panel Tuesday.
Columbia University professor Joseph Stiglitz and MIT professor Simon Johnson warned the Joint Economic Committee of Congress that the current government policy of propping up troubled financial giants could impede an economic recovery.
I did attempt to see this hearing on CSPAN III but could not find it.
Lehman is always the BIG CONCERN provided by anyone attempting to do anything to make real change with these old FAT CAT BANKS.
Any yet at least a few seem to get the truth..
http://www.nytimes.com/...
Mr. Geithner is right to want a rapid seizure system for shadow banks. What’s odd is that at the same time that he is proposing one, the government is failing to use powers it already has to restructure insolvent commercial banks. Instead, Mr. Geithner continues to suggest a variety of other actions that seem unlikely to solve the banks’ central problem — a lack of equity capital. Perhaps he fears what would happen if large bank holding companies were to default on their bonds, which are held by insurance companies and other institutional investors. But that is a problem that needs to be tackled head-on, not by propping up failing banks.
As Stiglitz has offered via the Good Bank, Bad Bank, those bondholders who supported these FAT CAT BANKERS retain their bad assets with the hope of seeing them make enough profit at some point in the future. The goal of recovery with regard to their investment over time might allow a fair value however currently there is simply no market for those legacy assets.
That fact should be their problem and not the U.S. Taxpayers.
The Street is quick to point out the BANKS are making $250B per year without preferences, while WORKERS in the real world are finding a job almost impossible to keep..
http://www.cnbc.com/...
Every company doing what it is able to maintain profit, with one of the first things to go, JOBS.
What Giethner, Summers, and the rest of the STREET CROWD don't seem to understand is the real RISK. WORKERS getting FEED UP after their unemployment runs out. This while keeping in mind, many have already lost their homes. Some 6 MILLION NOW and climbing.
The answer is an a Bail-Out that will work. That plan if offered by Stiglitz.
The Good Bank and the good assets would go with the U.S. Taxpayer who is footing the bill on all of this BAIL-OUT.
This then allows for new loans, new management and leaves the legacy with the FAT CATS who helped get us in this mess.
This is as it should be. My guess is the Preferred and the Bondholders have many friends in a public service role who will do their best to keep this story buried for some time to come.
WHO is concerned about the American Worker who is also the U.S.TAXPAYER?
How does he/she pay taxes if they have no JOB?
Johnson wants to apply Anti-Trust Laws. To Big to Fail, gets broken up.