Endorsers of significant change in banking

 Editor's Note:  Robdashu is a "guest writer" and contributor to the TMC FORUM.  He is amongst those that see the truth and is willing to speak out.  Look for more Guest Posts in the future.  

This post articulates the previous post

A Too Big Too Fail Apology From Former Citi Chairman

Alan Greenspan:

"If they're too big to fail, they're too big" - Alan finally recognizes the moral hazard of bailing out these risk-takers. They'll just do it again, expecting to be bailed out again.

Paul Volcker:

Volcker wants the splitting of commercial and investment banking back into separate entities; leave the risk-taking where it belongs - among those willing and able to take the risks; this still does not address the havoc that risky trading can bring to the system, and the unintended financial wounding of innocent bystanders. Still, a big step in the right direction.

Joseph Stiglitz:
(Nobel-prize winning economist)

The "too big to fail" banks have gotten even bigger since the crisis under Obama's guidance, and have not change their risky investment behavior. Stiglitz favors some kind of breakup of the mega-banks.

Paul Craig Roberts
(was Assistant Secretary of the Treasury in the Reagan administration)

Roberts compares the trading of financial derivatives like credit swaps to be tantamount to casino gambling. The bets on companies' financial positions open up all kinds of perverse incentives in this market.
Roberts article http://www.counterpunch.org/roberts10162009.html

Dominique Strauss-Kahn:
head of the International Monetary Fund,

":without a slimming down and restructuring of the banking system there can be no economic recovery":

"As long as the financial sector is not restructured, which means it has in some way to shrink, and some part of it has to just disappear," said Dominique Strauss-Kahn, Confidence has to be restored by recognition of all the losses [they have incurred]. Until this has been done confidence will not come back."

http://www.voanews.com/english/archive/2009-01/2009-01-26-voa62.cfm?moddate=2009-01-26

Simon Johnson, a professor at MIT’s Sloan School of Management, was the chief economist at the International Monetary Fund during 2007 and 2008.