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It appears Mr. Johnson's frustration meter is approaching pegged.
His commentaries seem to be getting much sharper recently. Here's a few snippets.
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http://baselinescenario.com/2009/03/...acy/#more-2893
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http://baselinescenario.com/2009/03/...ing/#more-2901
His commentaries seem to be getting much sharper recently. Here's a few snippets.
But smart people frequently produce unfortunate or even idiotic outcomes - it all depends on the incentives and the process. And, of course, of their ability to keep things covered up until they have moved on to another job. Check with your local subprime mortgage lender for details.
It is, pure and simple, the kind of short-sighted and deluded European financial policy that prompted leading countries to demand that the IMF cut 20 percent of its most skilled and experienced personnel in early 2008–at the same time as Bear Stearns collapsed and major banks in almost all industrial countries started to unravel. It is hardly believable–but nevertheless true–that the G7 and now the G20 have refused to undo the IMF cuts and replace essential staff.
Egregious stupidity and borderline malpractice goes unnoticed in the international economic diplomacy space, or at least not picked up on by leading news sources or in the general public discussion. Why? To some (the media), it doesn’t quite meet the threshold for newsworthy
European policy towards the IMF is a masterpiece of misdirection and disinformation. The proportions and audacity should take your breath away. And of course the same principle applies to government officials dealing with international economic policy as it does to CEOs of failing banks: never admit responsibility and definitely never suggest there was the slightest mistake in the past (because that might actually be newsworthy to the mainstream or, even more scary, draw Jon Stewart’s attention).
Rearranging the deck chairs on the Titanic looks productive by comparison. The actions of the G7 with regard to the IMF in 2008 - and the attitudes of the Europeans still today - are more like burning lifeboats and throwing skilled pilots overboard. In this context, what are the odds that the upcoming G20 heads of government summit on April 2nd will truly be productive?
Rearranging the deck chairs on the Titanic looks productive by comparison. The actions of the G7 with regard to the IMF in 2008 - and the attitudes of the Europeans still today - are more like burning lifeboats and throwing skilled pilots overboard. In this context, what are the odds that the upcoming G20 heads of government summit on April 2nd will truly be productive?
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But the underlying issues are deeper still and laid bare by this week’s latest round with AIG. We have moved far beyond financial policy and into the kind of scandal that really gets taxpayers’ backs up. The greed of bankers slaps you in the face while the hubris of their leadership remains unchecked.
There is no sense of responsibility, no feeling of shame, no acknowledgment of any kind of mistake: read Lloyd Blankfein’s FT article again - or print it out and tape it to your wall. Because we now know, from the newly disclosed AIG counterparties list, that the wealth of Goldman Sachs insiders remains high solely because we saved their sorry bank, their failed risk management strategy, and their pretence of wisdom with our cash in mid-September.
This resentment against bankers pervades Congress, and even the Administration begins to get the message - being called “asinine” yesterday by Richard Kovacevich, the Chairman of Wells Fargo, may have helped underline to Treasury how deeply the bankers appreciate the help they have received. There can be no resolution and no moving on until there has been a proper congressional investigation, with full subpoena powers, into exactly what did and did not happen around AIG. This will take months and may well slow down the economy (Jamie Dimon’s clever point: if you vilify us, you will lose), but it is now inescapable. And, if channeled productively, this kind of hearing may lead to a better regulatory system (and smaller big banks) than the current anemic proposals on the table - as last weekend indicated, the G20 process is currently worse than useless on this issue.
There is no sense of responsibility, no feeling of shame, no acknowledgment of any kind of mistake: read Lloyd Blankfein’s FT article again - or print it out and tape it to your wall. Because we now know, from the newly disclosed AIG counterparties list, that the wealth of Goldman Sachs insiders remains high solely because we saved their sorry bank, their failed risk management strategy, and their pretence of wisdom with our cash in mid-September.
This resentment against bankers pervades Congress, and even the Administration begins to get the message - being called “asinine” yesterday by Richard Kovacevich, the Chairman of Wells Fargo, may have helped underline to Treasury how deeply the bankers appreciate the help they have received. There can be no resolution and no moving on until there has been a proper congressional investigation, with full subpoena powers, into exactly what did and did not happen around AIG. This will take months and may well slow down the economy (Jamie Dimon’s clever point: if you vilify us, you will lose), but it is now inescapable. And, if channeled productively, this kind of hearing may lead to a better regulatory system (and smaller big banks) than the current anemic proposals on the table - as last weekend indicated, the G20 process is currently worse than useless on this issue.
http://baselinescenario.com/2009/03/...ing/#more-2901
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