Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich

Monday, January 25, 2010

Siegel reveals his essential cluelessness

Obama’s call for limiting the size and trading activities of financial institutions by curtailing private equity and hedge fund investments as well as proprietary trading is totally off the mark. The crisis did not even originate in the hedge funds or in proprietary trading but in the risky loans that Obama’s proposals do not even address.

---Jeremy Siegel, 1/25

Bill:  Er, expletive.  They (banks) were proprietorially trading said loans.  If banks could not have done that, there would not have been all the bad loans.  The "banks" (operating with one hand in the shadow banking system) were the major part of the conduit of loan making, securitizing, selling.  Gillian Tett documents well how banks and shadow banks traded, tried to trade, decided to keep, etc, all the toxic waste.  ...While creating said waist.  Again, it is 100% clear to anyone who can breath and read that the bad loans would not have existed without the supporting cast of characters doing all manner of shady things.  What is Siegel's point?  Can he really believe that it was all about the guhment meddling is the ministrations of the great and exalted Invisible Hand?*

*Hint:  It wasn't

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