Saturday, July 11, 2009

Why our recession will last at least 10 years

Bill Moyers' interview with former regulator, now professor at University of Missouri KC, William K Black, is solid gold, infuriating, illuminating, captivating. 100 to 1000X worse than the S&L crisis that McCain helped to bring us in the 80s, with 1/5 the number of Federal agents as watchdogs now, compared to what we had then. Fraud on a massive scale. "AIG alone was at least as big as the S&L crisis". AAA ratings issued on derivatives that were assembled 'liars loans', sub-prime toxicity - the total destruction of global trust in the banking system. The Japanese 'lost decade' will look meager and tame compared to how deeply the American banking system, and our lack of effective regulation have gotten us all into. Geithner's finger-prints are all over this mess as former head of the NY Fed where he was supposed to be over-seeing and REGULATING, throttling back, subduing, the evils of Goldman-Sachs and other massive banks.

I need another drink.
Tip of the hat to Ron and to Mike S for the links to this interesting (and depressing) financial blog.

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