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“I’m
very close to thinking the United States shouldn’t be in Basel any
more. I would not have agreed to rules that are blatantly anti-American. Our
regulators should go there and say: ‘If it’s not in the interests
of the United States, we’re not doing it'...
I think any American president, secretary of
Treasury, regulator or other leader would want strong, healthy global
financial firms and not think that somehow we should give up that position in
the world and that would be good for your country. If they think that’s
good for the country then we have a different view on how the economy
operates, how the world operates.”
Jamie Dimon, in an interview with Financial
Times
Europe may consider taking Mr. Dimon up on his
offer, and ban the participation of the unreformed banks and their associates
from all activity in European markets until they reform themselves, and park
their arrogance at the border.
But I believe that the Iceland and Sweden models are the appropriate response
for dealing with reckless banking losses, that is, nationalize the bank and
force the principals to eat the losses, so this might be skewing my opinion
on this.
I think the failure to reform the banking sector when he had the best
opportunity will be viewed as Obama's fundamental policy error from which all
his other errors flowed. What else can one expect with advisors like Summers
and Geithner.
I am rereading Berlin Diary
1934-1941 by William Shirer, and this also is probably prompting
me to view some of the developments of the last three years in a slightly
different historical perspective. How else can one interpret the incessant
demands, the threats, the overturning of the rule of law, the endless
appeasement in order to maintain order, the corruption of public officials,
and the bully boy attitude of those most recently caught in frauds and
massive encroachments on the public sector?
I don't think it is possible to view the US market action too cynically or
skeptically today, if not in general.
The chip stocks led the way higher, with a faux fear masking the real
action.
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