Reform of the U.S. financial sector

The SEC and the Fed have failed in their roles. Slowly the systems are being overhauled. Unfortunately crooks like Bernard Madoff and alike still continue to enjoy their luxury mansions while so many people lost their life savings. Many are driven to despair or worse, commit suicide. Somebody who twice steals a bar of chocolate in a shop can end up in prison for a long time. Call that “justice”. I prefer the Chinese approach, once they act against the swindlers it is “drastic”.
The fake financial guru, Alan Greenspan, last week uttered the following “wise words”: “The real lesson here appears to be that bank regulators cannot fully or accurately forecast whether, for example, subprime mortgages will turn toxic, or whether a particular tranche of collaterized debt obligation will default, or even if the financial system will seize up”.
Like Floyd Norris commented – sounds like a student who failed his exam and says “Dad, nobody could pass the test”. Admitting errors is not the guy’s strong point. The SEC was warned enough about the swindlers but never acted.
So why do all those guys deserve to get so much money for their utter clue-less-ness? Good to cap some salaries in Wall Street. Danger of brain drain in Wall Street? You mean, there were brains over there? I thought it was just pure greed instead.
Bernanke is trying his best to reboot the system.
So much damage has been done, there is little else to do than to come up with a robust stimulus plan. All Americans need to realize there is a price to pay and for some years to come, in view of the past and future deficits. The alternative is to lower taxes for the rich and let the country implode, dragging the world economy further down.
My question is, what will happen to the USD within 2 years. Once the USA is not looked at as “the safe heaven”. And it has debts worse than ever. Now the euro is weakening, but later?
Here in China, no appetite to buy into any of the overseas financial firms. Can’t blame them. Anyway, here we are not yet out of the woods either. Naïve people enough here too, except for the top government people. So, they prepare the police and army for “social disturbances”.

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