"Dave" wrote in message
...
On Fri, 24 Oct 2008 13:12:29 -0700, "Capt. JG"
said:

McCain was among those who advocated
for the failed policies of deregulation,

So long as people buy into that kind of superficial nonsense, the problem
won't be solved. There needs to be some creative thinking about how to
restructure our financial system so that there is no such thing as a bank
too big to fail.

There are a lot of mortgage backed assets out there now that are changing
hands, when they do change hands, at far less than their risk and
projected
cash flows justify. That means there are some big profit opportunities for
the right buyer.

There is also a great deal of capital sitting on the sidelines that could
be matched up with those assets. The objective should be to get the
undervalued assets out of the hands of the "too big to fail" institutions
and into the hands of a large number of smaller players funded by the
capital on the sidelines.

That means that in one fashion or another those "too big to fail"
institutions have to be allowed to fail, and their assets split up into a
number of smaller but healthy institutions.

Empty-headed slogans about the supposed evils of deregulation (a la
Democrats), or "corruption" or "greed" (a la McCain) aren't going to get
us
there.


I agree with much of this, except that I do believe a lot of this could have
been prevented or mitigated by regulations that were either abandoned or
ignored. And, there was certainly plenty of corruption and greed. McCain
knows all about that, having been involved up to his eyeballs with Keating.


--
"j" ganz @@
www.sailnow.com