Big Banks and D.C. Politicians Doing the EXACT SAME THINGS Which Caused the Financial Crisis In the First Place — Instead of Changing their Behavior to Prevent Another Crisis, the Powers-That-Be Double Down On the Strategies that Caused the Financial Crisis In the First Place


Liberals blame deregulation and reckless Wall Street greed for the economic crisis.

Conservatives blame bad government policy.

Now, the D.C. politicians are doing the exact same things which got us into the crisis in the first place.  For example, they are:

And the big banks and financial institutions are engaging in the same risky behavior which got us into the crisis in the first place.  For example, they are:

What could possibly go wrong?

Category: Bailouts, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “Doubling Down On What Caused the Financial Crisis”

  1. killben says:

    Where is incentive to change? In fact quite the contrary..

    Till law of the land prevails, this will continue. IMHO it can change only if it blows up and Bernanke cannot put it together again. As long as a Mad Man is in charge of a country’s destiny, this is what you will get. As Mish says, the issue is the Fed and their fractional lending. Fed is doctoring the economy without any accountability. Has anyone held Bernanke responsible for his statements prior to 2007? Despite the abject foolishness displayed by him he trouts his PhD and study of Great Depression to be the Fed Chief. How many people can feel so confident after having exhibited such foolishness? May I add lobbyists, settlement without no wrongdoing, too big to jail and politicians to the pot of ills?

  2. bonalibro says:

    Re: bullet point 8, zero hedge claimed 90 million people discouraged from looking for work. Really?
    That would include most of the adult population, perhaps the entire adult population between 18 and 70 and then some. I think someone needs to go back and re-examine those numbers.

    • cowboyinthejungle says:


      I don’t know about ZH’s stats, but 90M isn’t even half of the ‘working age’ U.S. population. So on your last point, I agree.

    • droubal says:

      Go to the BLS site and look at Labor Force statistics. They list 90 million as not being in the labor force. That’s partly how we only have less than 8% unemployment. If you don’t count ‘em they are not unemployed.

  3. Thingumbob says:

    Indeed, it seems that the inmates are running the asylum again.

  4. Thibault says:

    Hard to blame banks. They will use as many tools as the law allows. They won’t just stop using derivatives to please the rest of the country. This is an example of market failure. Nobody is able to put enough pressure on the banks for them to cease risky activities, even though those can only lead to bad consequences for society as a whole.
    Though I doubt splitting banks will help, you gotta let banks fail and not rescue them. It seems dreadful, no one wants to let individuals lose their savings. This is exactly why we should do it. This way clients will think twice before choosing a bank, and this untapped potential will put pressure on the banks.
    Before elaborating complex laws ro regulate the derivatives market, a simple application of liberalism can help a lot!

  5. Init4good says:

    I think the inmates actually could do a better job at this point in time. These ppl actually think they have a “handle” on how to “run” the economy. History has proven that notion false and will again do so.

  6. Frilton Miedman says:

    All of it has a single source. – Money in politics.

    The baffling SCOTUS phrase that “money is speech”, completely ignoring what defines “bribery”.

    We’re going t need an amendment to get around the SCOTUS, this likely won’t happen until a large enough fraction of the populace is angry, desperate and informed enough to know. (Fox, CNBC have served to misinform)

  7. Mattw says:

    If a crash is the solution, and you won’t let that happen, then why should things ever get better?

    It’s going to get worse. If screwed up ideas permeate the financial sector, then why can’t screwed up ideas permeate all sectors of society? So it’s not just the economy. It’s everything.

    Take a look at what the Business Insider is reporting about Art Cashin:

    Here’s Cashin’s response to a question about what concerns him most:

    “I’m still concerned about geopolitics. Here in this business I have learned that the story which seems to be buried on page 13 can sometimes almost instantly rocket its way on to page 1, and rocket its way to everyone’s attention. But perhaps the greatest concern I have, Eric, is that there is a kind of complacency.

    There seems to be an almost palpable belief around the world that cooler heads will prevail. Someone will step in and stop this from happening. And while it happened even before I began my 50 year career, I’ve long been a student of history, both financial and geopolitical, and I think back to World War I when everyone on both sides knew that such a war would be unwinnable, would be distasteful, but managed to walk into it believing that logic would prevent the guy on the other side from making a fatal mistake.

    So whether it is exercises in Korea or economic changes in Europe, the idea that rational men will prevent irrational crises doesn’t live up to world history.”