STOP IMPOSING FINANCIAL LAWS, IT IS NOT A FREE-MARKET APPROACH.
Bernanke makes statement about loosening laws...
WARGLEBARGLE!!
I'd like to see how long a no reserve banking system would last without the FDIC. It is my hope we will get to see how long it will last with it. Droping the requirements now will not do much today as I believe most banks are currently way above the 10%. But this does have distaster written all over it down the road. I'm sure there is a way to make a tremendous amount of money off this new approach up until judgement day.
I think its your basic two-handed approach. Like when your kid crashes the car drunk. You don't beat the shit out of him at the police station. The next day, you don't say much at all. You get the car fixed. It comes back from the shop.
Then when you're handing him the keys back, on a warm Friday evening in early April, you whisper in his ear... "If you put one scratch on this car drunk again, I'm gonna beat the fuck out of you naked in the holding cell at the police station, and leave you there to rot."
The gov caught a lot of shit bailing out the banks. "Too big to fail" is now, officially, a dirty word. He's turning them loose to operate with flexible rules, which they need to operate - as we can all agree. But they're watching them closely, and still own sizable portions of the banking industry. If they fuck up again, and start playing fast and loose, the next go-round will not be pretty. People will go to jail. Everybody now knows banks can be seized, and it would probably be popular among the population as individual companies are smashed flat for transgressions, as a warning to others who are beginning to relax and tend to forget (as people do) in the coming years.