Sep. 8, 2009 at 1:18pm with 5 notes
Reblogged from ninakix
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ninakix: Apparently, the banks are getting bigger… Well, the top three, anyways. With all the mergers and acquisitions through the financial crisis, it looks like somebody has benefited. (via) The last things I want to do is to defend giant corporations, but I’m not sure if the FEDs had any other options other than forcing these shotgun marriages.  I mean, look at the one case they didn’t intervene; the one giant financial institution they didn’t bail out, nor did they force anybody to buy it; Lehman brothers.  Prior to Lehman, the feds had prevented bankruptcy of bear sterns, freddie & fannie, but this time they decided to let Lehman fall because of moral hazard.  & look what happened: the crisis just escalated. I’m not defending protecting rich guys. But that’s something you should have prevented years ago. Once the crisis starts, there’s not much you can do. Some go broke, some get rich. Therefor, these kind of mergers, unfortunately, can’t be prevented & can be justified.  What can be prevented & what can’t be justified is the way the feds & right wing economists & politicians ran the economy before the crisis, blindly following their own ideological agenda (ie. free market crusade) & their political motivations (ie, protecting their sponsors). 

ninakix:

Apparently, the banks are getting bigger… Well, the top three, anyways. With all the mergers and acquisitions through the financial crisis, it looks like somebody has benefited. (via)

The last things I want to do is to defend giant corporations, but I’m not sure if the FEDs had any other options other than forcing these shotgun marriages. 

I mean, look at the one case they didn’t intervene; the one giant financial institution they didn’t bail out, nor did they force anybody to buy it; Lehman brothers. 

Prior to Lehman, the feds had prevented bankruptcy of bear sterns, freddie & fannie, but this time they decided to let Lehman fall because of moral hazard. 

& look what happened: the crisis just escalated.

I’m not defending protecting rich guys. But that’s something you should have prevented years ago.

Once the crisis starts, there’s not much you can do. Some go broke, some get rich. Therefor, these kind of mergers, unfortunately, can’t be prevented & can be justified. 

What can be prevented & what can’t be justified is the way the feds & right wing economists & politicians ran the economy before the crisis, blindly following their own ideological agenda (ie. free market crusade) & their political motivations (ie, protecting their sponsors). 

  1. yabconvos reblogged this from oforion and added:
    Oh, I completely agree. I think it’s generally agreed that the Fed and government in general did a lot to prevent the...
  2. oforion reblogged this from ninakix and added:
    The last things I want to do is to defend giant corporations, but I’m not sure if...FEDs...
  3. ninakix posted this