Treasury Dept. Watchdog: Bailouts created more risk

[StageLeft]

http://finance.yahoo.com/news/Watch...tml?x=0&sec=topStories&pos=main&asset=&ccode=

The government's response to the financial meltdown has made it more likely the United States will face a deeper crisis in the future, an independent watchdog at the Treasury Department warned.

The problems that led to the last crisis have not yet been addressed, and in some cases have grown worse...

Since Congress passed $700 billion financial bailout, the remaining institutions considered "too big to fail" have grown larger and failed to restrain the lavish pay for their executives, Barofsky wrote. He said the banks still have an incentive to take on risk because they know the government will save them rather than bring down the financial system.

Basically the same thing many of us have been saying for a while, particularly how regulation has not sufficiently come in place to ensure this doesn't happen again.

And here is why it doesn't matter because government doesn't give a sh*t:

Treasury said it welcomed Barofsky's oversight but resisted the call to erect new barriers against conflicts of interest. The new rules "would be detrimental to the program," Treasury spokeswoman Meg Reilly said in a statement. The existing compliance rules "are a rigorous and effective method of protecting taxpayers," she said.

 

[dmcowen674]

http://finance.yahoo.com/news/Watch...tml?x=0&sec=topStories&pos=main&asset=&ccode=

Basically the same thing many of us have been saying for a while, particularly how regulation has not sufficiently come in place to ensure this doesn't happen again.

No surprise at all considering the posts made by Republican AT members here that are obviously part of the whole scheme and scamming of America.

Only good thing to come out of it is that they are openly posting their hate for this country.

 

[Jhhnn]

I can't argue, Skoorb. Exploitable conflicts of interest are what allowed the crisis to develop in the first place, and they won't go away on their own.

America's financial community needs a short leash on a tight collar and a very demanding trainer... otherwise they'll just follow the old dog's motto-

"If you can't eat it or fvck it, piss on it."

America is just standin' in the puddle, waitin' for it to happen again...

 

[Craig234]

When I was looking at the great depression, something I noticed was the strong desire for people to think they could end it with boosts.

Some wealthy people put their fortunes into the system on this ideology - and pretty much everyone said that was the last of the problem. It bought them a few months. Then the big crash came.

The culture was diffferent then, with the federal government not getting involved but a 'moral pressure' on the elites to use their fortunes. The result isn't that different.

What actually helped was the New Deal's new regulations. What would help now is the government again regulating better, at least, not having Wall Street so powerful they can block regulation.

Not a few experts say that the problems have been put off, not cured, and we are at risk until the government takes on the bad parts of Wall Street.

It shouldn't be a huge surprise politicians are more likely to put bad economics off. But we can't afford the bailouts to keep going. We have spent a fortune and jeopardized our economy.

Meanwhile, Goldman Sachs had 'one of their best years ever', in part with their risky investments repaid at 100% on the dollar by tax money.

 

[MotF Bane]

Anybody surprised by this is clearly retarded.

 

[Moonbeam]

Anybody surprised by this is clearly retarded.

And your all knowing perspicacity has bought you exactly what?

 

[Moonbeam]

The people who bought the government run this country exactly like they want. The war of the right on the left insures there will be no war on those who have the real power.

 

[Jhhnn]

The people who bought the government run this country exactly like they want. The war of the right on the left insures there will be no war on those who have the real power.

Not exactly, Moonbeam. The People you speak of finance the thinktanks of the Rightwing. They finance the RNC and whatever politicians are willing to fit into their cookie cutter. They've spent vast sums to alter democracy to their liking. They started the war over 30 years ago, and, as Warren Buffet points out, they've been winning it, too...