Friday, July 08, 2011

Mark Sigal's 'The Great Reset' - required Drunky Reading #ITM

Today's required reading comes from Mark Sigal, @netgarden on twitter. It raises the right questions of 'what now' --now that we all have to move on in the wake of three Boomer presidencies, here in the USA. But first, a little refresher about why NO ONE wants to make a business or 'participate' in this mess:

"I remember when I started my first career in real estate back in 1988, and the savings and loan crisis was in full force (it was a much smaller version of our current banking imbroglio).

Then, three things came about in its aftermath:

1. Real structural change.

2. A functioning marketplace for getting rid of non-performing assets.

3. Readily identifiable perpetrators went to jail.

Not this time. Not only did the perpetrators not go to jail or even lose their jobs, but they got raises and got to keep their bonuses. This, even though the "profits" were disproportionately derived from a guaranteed arbitrage gifted by the U.S. government.

Even worse, most would agree that the reforms to the system were largely cosmetic, with the clean up of toxic assets occurring behind the public curtain with even more financial engineering."

(Via The Great Reset: Why tomorrow may not be better than today - O'Reilly Radar.)

I remember the S & L crisis. I even remember many businesses going under because the FDIC came in and broke up the loanees of these toxic banks.

When will the malaise be broken? Refer to history, and to points 1-3 above. Kudos to Mark for writing this.

Drunky out.

PS. We'll talk about flooding the US STEM market with H1B cheap slaves, 'StartUp VISA' charlatans, and 'Dream Act' conscripts for our 'armed forces' later. Honest Injun.

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