Simon Johnson: "Dodd-Frank Resolution Authority Doesn't Apply To Goldman Sachs, JPM Or Citigroup"

Video - Simon Johnson at INET's Bretton Woods conference - April 9, 2011

In the clip above, MIT professor and former IMF Chief Economist, Simon Johnson, speaks at the "Bretton Woods" conference Saturday on the top of Mount Washington in New Hampshire.  In a brisk, to-the-point talk, Johnson reminds his fellow panelists that Dodd-Frank does NOTHING about Too Big To Fail, that banks are bigger now than they were before the crisis, and that everyone from Tim Geithner to Jamie Dimon just wants to stick his head in the sand and pretend that everything is fine.  In fact, Dodd-Frank has simply reinforced the notion that when banks get into trouble, they will be bailed out by taxpayers.  And in the meantime, their executives will collect huge bonuses, just like they have been for the last decade or more (excepting that little hiccup in 2008).

Johnson also has an interesting discussion of Basel III and how the new capital requirements are basically a joke.  Even under Basel III, leverage will still be dangerously high and private gains will continue to be collected by bank insiders (until the next blow-up), while losses will be borne by the public.

Crucially, Johnson also reminds us that the TARP money has nothing to do with the total costs of the crisis, which include 8 million jobs lost, long-term unemployment, a huge increase in public debt, and further consolidation of the banks' control over the political process.

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More on the conference...

INSIDE GEORGE SOROS’S “MONSTROUS MONKEY HOUSE”

Snow-capped peaks; nightcaps with Larry Summers; discussions of complexity theory over breakfast; Tennyson quotations from Gordon Brown at lunch. No it’s not Davos—it’s Bretton Woods, New Hampshire, where over the weekend the Institute for New Economic Thinking (INET), which George Soros set up in the wake of the financial crisis, held its second annual conference. Last year’s inaugural get-together was held at King’s College, Cambridge, the home of Keynes. This year’s location also had a strong link to J.M.K. It was the grand old Mount Washington Hotel, which in the summer of 1944 played host to a famous international conference about the post-war monetary system.

http://www.newyorker.com/online/blogs/johncassidy/2011/04/george-soros-bretton-woods.html#ixzz1JRipyqOd

Comments

[DailyBail]

INSIDE GEORGE SOROS’S “MONSTROUS MONKEY HOUSE”

Snow-capped peaks; nightcaps with Larry Summers; discussions of complexity theory over breakfast; Tennyson quotations from Gordon Brown at lunch. No it’s not Davos—it’s Bretton Woods, New Hampshire, where over the weekend the Institute for New Economic Thinking (INET), which George Soros set up in the wake of the financial crisis, held its second annual conference. Last year’s inaugural get-together was held at King’s College, Cambridge, the home of Keynes. This year’s location also had a strong link to J.M.K. It was the grand old Mount Washington Hotel, which in the summer of 1944 played host to a famous international conference about the post-war monetary system.

http://www.newyorker.com/online/blogs/johncassidy/2011/04/george-soros-bretton-woods.html#ixzz1JRipyqOd

[DailyBail]

The Crisis Has Been Wasted

http://www.piie.com/blogs/?p=2110&utm_source=feedburner&utm_medium=%24{feed}&utm_campaign=Feed%3A+%24{RealTime}+%28%24{RealTime}%29&utm_content=Google+Reader

[DailyBail]

Chart of the Day: Fed Ownership of the Yield Curve

http://www.ritholtz.com/blog/2011/04/chart-of-the-day-fed-ownership-of-the-yield-curve/

[DailyBail]

Ever since Marxian multiculturalists took over the administration of Loyola University Maryland they have been encouraging students (and faculty) to spy on each other and report all non-PC behavior to them. The latest example of this creepy behavior is the posting of expensive-looking flyers around campus stating, in all capital letters: “REPORT UNEQUAL TREATMENT.” There’s an email address at which any and all can file a report on campus inequality.

http://www.lewrockwell.com/blog/lewrw/archives/85252.html

[DailyBail]

Portugal starts bailout talks; deal seen

http://www.reuters.com/article/2011/04/12/us-portugal-talks-idUSTRE73B3VI20110412

[john]

Larry Summers: The U.S. Is Like Japan In The 1990s And We Need To Keep Spending

http://www.businessinsider.com/larry-summers-says-the-us-is-like-japan-in-the-1990s-and-we-need-to-keep-spending-2011-4

Note: This article also includes a 67 minute video of Summers at the conference.... If you like psychology this is a good one. He discusses some very "interesting" things so have a couple of drinks and you might enjoy it, might make an interesting drinking game with his word play.....

[LiberatedCitizen]

Carl Levin To Refer Goldman To Justice Department, SEC For Misleading Investors And Committing Perjury

http://www.zerohedge.com/article/carl-levin-refer-goldman-justice-department-sec-misleading-investors-and-committing-perjury

I won't hold my breath to see perp walks

Remember when Durbin said frankly the banks own the place he should know he takes full advantage it appears he adjusted his portfolio to gain from the benefit Berkshire Hathaway via Goldman Sachs received from these bailouts.

http://www.economicpolicyjournal.com/2009/06/insider-trading-in-congress-very.html

Soro's wants to see America go down he has for a long time he's a criminal has a conviction in France the evil little obama puppet master should right fully be in prison.

Stiglitz, Soros, Summers try to remake global economy

http://www.youtube.com/watch?v=roos4oQKipM&feature=player_embedded

Insider trading conviction of Soros is upheld

http://www.nytimes.com/2006/06/14/business/worldbusiness/14iht-soros.1974397.html