Archive for Sunday, September 20, 2009

Adviser: Troubled firms should fail

September 20, 2009


— President Barack Obama’s top economic adviser on Friday pressed for new restrictions on the biggest and most intertwined financial institutions and said the industry should not count on government to rescue them from crisis again.

“Our financial system will not be fail-safe until it is safe for failure,” said Lawrence Summers, the director of Obama’s National Economic Council.

Summers especially called on Congress to pass new requirements that would force large, super-leveraged institutions to have bigger cushions of capital to protect them if their risky transactions fail.

His remarks came just days before leaders of the top 20 economies meet in Pittsburgh where their responses to the crisis that brought financial systems to the brink last year will dominate discussions.

Summers decried the options the federal government faced last fall with Lehman Brothers and insurance giant American International Group. Lehman was allowed to succumb in bankruptcy, creating a panic across the system. AIG was bailed out with billions in government rescue funds out of fear that its demise would cause a cataclysmic chain of events.


Richard Heckler 8 years, 8 months ago

The Reagan/Bush deregulation craze, Global Economy and The Reagan Bush Home Loan scandal wrecked the economy. Bush/Quale came along and continued down the road of wreckanomics. All of this activity put millions of people out of work.

Then Bush/Cheney lied and took us down the road of trillion dollar wars,ANOTHER home loan scandal which has wrecked the economy and continued wreckanomics.

This equals 20 years of the last 29 that were wrecked by RINO Bush family of politicians. They never told anyone during their campaigns they were going to wreck our economy and put millions upon millions upon millions out of work and pass tax laws that encourage tax laws favoring outsourcing. The icing on the cake was deregulation that promoted the unemployment of america.

We know Reagan/Bush/Gingrich reckless RINO's are proud to have supported this reckless fiscal behavior as is noted by the blind loyalty to reckless wrecknomics.

The bottom line is no one can repair in a few months what 20 years of reckless RINO's did. Yes RINO's took the USA distinction as a world financial super power down the tubes in 8 years. Talk about stupid and criminal.

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