I ♥ Obama

... his bank reforms at least.

I was skeptical this morning, but the plan announced today is awesome.

It's called the Volcker plan, named after the one Obama economic adviser who's not in the pocket of Wall Street. It would require banks to split off their speculative trading divisions from their taxpayer-guaranteed, Fed-subsidized traditional banks. It would also finally limit leverage at the largest banks.

Finally, after a year of corruption and incompetence, Obama gets around to the obvious solution to "Too Big to Fail."

Denninger is also thrilled, and Mish supports the plan.

Who's against it other than the Wall Street crooks? The Wall Street crooks' Congressional and Treasury puppets, of course. Barney Frank and Timmy the Tax Cheat.

UPDATE: But if banks can't buy crap assets with cheap government funding, who will the FDIC (government) dump its crap assets on? Ever get the feeling you're watching the very last stage of a giant Ponzi scheme?


Jr Deputy Accountant said...

Yes. And it's too exciting to look away.


SarahB said...

great update!! This one hasn't been on my radar this week...so thank you for being on top of it. Need to go do my homework. Starting to think I know what your secret profession is ;-)

Anonymous said...

Barney Fag should be imprisoned.

Anonymous said...

http://tinyurl.com/ybmymfm Advocates of Volcker's ideas were delighted. "This is a complete change of policy that was announced today. It's a fundamental shift," said Simon Johnson, a professor at MIT's Sloan School of Management. "This is coming from the political side. There are classic signs of major policy changes under pressure . . . but in a new and much more sensible direction."

Volker isn't perfect (who is) - he's been burned in effigy by the unwashed masses before but he does have some good ideas that are right for the times (imho). Jeff

Anonymous said...

Ponzi, yes!

Happy Super Tuesday!