Sunday, December 13, 2009

Mr Volcker -- Too Late

Paul Volcker appointed by Obama to be his advisor never got his ears, frozen out by Larry Summers and Tim Geithner. It is clear why. What Volcker is saying is the opposite of what Summers/Geithner told the President.

Volcker's comment here on how Goldman Sachs is benefiting from taxpayers' money is well understood by anyone in the financial business. Goldman was given essentially risk free money by the US government with which Goldman has made record profits and is passing out record bonuses.

Let's be clear. Goldman has done nothing illegal. It's all within the parameters set by Team Obama.

Volcker is right to say a profit maximizing firm should not effectively be heavily subsidized, indeed, underwritten to make profits accrued to private interest.

However, it's too late. Appropriate restrictions had never been put on bailout money.

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