Many observers of the smoking wreckage which now passes for our banking system have opined that, in addition to being hobbled by a fragmented regulatory system riddled with overlapping and ill-defined responsibilities, the regulators who were supposed to be watching the chicken coop were woefully overmatched by the foxes.
The Epicurean Dealmaker on how best to regulate the banking system.
You can feel a simmering sense of injustice in the air today.
Quite fancy heading down there myself-there a lot of stuff that needs venting.
Violence is never best the solution to any problem-but if you push enough people too far in any direction, you are bound to get a reaction.
Follow the G20 protests as they happen here.
I predict a riot.
2:20 in…
“On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn’t be further panic out there.If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.”
Absolutely chilling.
via alphaville /dailykos
Talking of apocalyptic visions of the future.
On the anniversary of Black Thursday, October 24, 1929, the start of the Wall St crash, rumours fly that General Motors and Ford are filling for bankrupcy stock markets around the world crash (again).
Dow futures hit ‘Limit Down‘, the maximum amount they can fall in one day, before the market’s open.
Once again, that man Roubini, predicted it.
This could be the big one.
