Courtesy of Larry Doyle.
This commentary is fully consistent with my opinions widely shared here at Sense on Cents.
I concur with this WSJ writer that relative to where we were 5 years ago, "Today, little has changed in our financial system."
Rewriting the Lehman Postmortem
Asset bubbles for the rich and a welfare boom for the rest does not a recovery make.
Excerpt:
"Mr. Bernanke was right: The subprime bubble itself wasn't a big deal. It was uncertainty about government behavior, once institutions were loaded with illiquid but not necessarily worthless "Triple-A" housing paper, that turned a sharp housing correction in a handful of states into a global financial panic.
Now let's admit that in any financial system resembling ours, such things will happen. A bank is insolvent when government says it's insolvent. Under government rules, arguably mortgage securities should have been written down to reflect fire-sale prices prevailing in the market." (Added by Ilene)
Have a good weekend.
Larry Doyle
Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.
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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.
