Question: Is Tim Geithner going too easy on banks and hedge funds?
Moyo: I don’t think you can say, we can say that because it’s important to understand the global linkages and perhaps allowing Lehmann Brothers to fail as an example of why you cannot make these decisions very quickly nor you can make them very light…in a very light manner. Not only do others such close linkages and significant linkages in terms of size that could really dramatically affect or cause a collapse of the whole banking system which would not be a good thing where they to be a decision to allow some hedge funds to fail, for example or some investor to fail. So, I actually don’t think so. I think it’s a much more…it is a much more considered approach. I know people are very anxious and very keen to see decisions be made quickly, but I think it’s really important to understand that we know also know that what can happen to its system if a bank is allowed to fail or a big financial institutions is allowed to fail from the experience of seeing Lehmann Brothers fail. So, I actually think that, you know, we would like to see more regulation. We would like to see some changes to the system from where it was in the past, but I don’t think that we should get too hung up on allowing us specific hedge fund or hedge funds to fail.
Discuss
Gregory Wonderwheel on March 28, 2009, 12:00 AM
Ms. Moyo is an apologist for the wealthy gambling system. What we need to do is outlaw hedge funds and prohibit banks from being able to create money in the first place. Also usury laws need to be reinstated to prevent credit interest in amounts greater than 10 percent.
If people like Ms. Moyo won’t attack the problem at its root then nothing will change.
shawn disney on March 30, 2009, 12:00 AM
It is the very globalization and interconnectedness that makes these international banking and insurance arrangements so dangerous. To preserve this system is to lay ourselves open to an even bigger disaster later. “Regulation” is a very feeble reed indeed; when has it ever prevented anything? Only in hindsight. By breaking up these incipient monopolies, we will be told that we are losing “efficiency”, but it appears that the efficiency being described is how to create ever larger financial disasters. Let’s not forget that a most revered capitalist described accurately years in advance that these new inventions (Derivatives) were a toxic “weapon of mass destruction”. Despite all his credibility, nothing was done about it. disigny
Tim Ray on April 7, 2009, 8:49 PM
Have you no heart! the money channeled by governments make their way into Swiss Bank Accounts….hello….what about Swiss workers??? we need to do away with money and start using Love!! Love will conquer all!!! Look people….this is about aid packages not banking institutions. Gregory need to go back on his meds and you too Shawn….we are still dealing with the problems i remember on posters when i was in the 5th grade in the 50s. Bono/Jolie/Madonna are the problem….light headed do-gooders that perpetuate the problem. You have American subsidies on cotton that undermine African farmers….you have the Chinese stealing the natural resources(as did the French/British/Germans) and handing back a few roads and tennis shoes. Bush-Clinton-Bush-Obama are the problem…you cannot just throw money at them….
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