Wednesday, March 11, 2009

Being a Capitalist III

Yesterday evening on "The Charlie Rose Show" the Treasury Secretary, Timothy Geithner, says that capitalism will "be different" and that the changes are already "dramatically different" in that the "financial industry is already profoundly different."

This scope seemed to include the sheer number of banks that have failed so far. Secretary Geithner also indicated that what doesn't get taken care of naturally will be done through regulation which will "clean out a lot of the excesses and bad practices."

Quite frankly it's not the small banks that concern me; it's the big Wall Street banks that hold the greatest concern for me. We have already had many bank failures, some 26 this year alone, and we have had major banks scandals in the past. Remember the S&L Scandal?

What have we done differently since the S&L scandal that should have made the difference now? Secretary Geithner assures that we will have "better rules of the game."

What do you think? I hope he's right.

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