Sunday, 5 July 2009

Bankers are the tail wagging a sick dog

One of the most astute observers of the financial world, Simon Johnson, has a very good posting which underscores the astounding hubris of the American Bankers Association.
In Johnson's blog, which is also available here he provides the following quote from a recent ABA press release.
"It is now widely understood that the current economic situation originated primarily in the largely unregulated non-bank sector,” he said. “Banks watched as mortgage brokers and others made loans to consumers that a good banker just would not make and they now face the prospect of another burdensome layer of regulation aimed primarily at their less-regulated or unregulated competitors. It is simply unfair to inflict another burden on these banks that had nothing to do with the problems that were created."

This extraordinarily inept remark completely fails to take into account, as Simon Johnson points out, the fact that it is the rescue of the banking industry by taxpayers the world over, which explains why economic stagnation and possibly worse will be with us for years to come.

The quote provided from the ABA press release is indicative of an industry that not only has no shame but one that seems to have learned nothing from the near meltdown last fall.

The banking sector is the tail wagging the sick dog which is better known as the global economy.

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