He didn’t utter a single syllable implicating Congress.
No mention that guys like Schumer and Conyers were willing to take banks to court for not lending to the poor.
The banks heard, “Do it, or else.” And they did it.
As for the CDS’s, again, nothing. Not a word.
Mr. Andrea Mitchell is a pimp, and holds large responsibility for the mess we are in. Not to mention his testamony undermining the existing administration in Tresury, Reserve, and Banking.
He should hide somewhere and cry a little, because the history books, eventually, are going to hang this one right in his posterior.
“The banks heard, “Do it, or else.” And they did it.”
You know what else they are hearing right now?
They are hearing the government might bail them out, so they are going to sit still until they hear how. To not take advantage of govt. bailouts would be a breach of fiduciary responsibilities to shareholders, and would risk losing jobs.
They are also hearing that under Paulson’s first auction plan mortgage backed securities would be evaluated and valued. To not wait out this valuation process to judge by comparison what the value of the paper they themselves hold would be stupid and maybe a breach of fiduciary responsibilities.
They are also hearing that maybe the auction plan won’t be so big, or not. They certainly don’t trust Paulson and his cronies to be fair across the board. Then they hear the govt. will forcibly take shares in big banks and the Europeans’ urging. Still possible? Now we have Greenspan admitting he was a fool, after Bush’s daily scare noise, and new ideas here presented.
A big reason for the supposed “credit crunch” is the banks awaiting the Bush administration decision, and its ongoing indecision. Complete incompetence.