“I’m very close to thinking the United States shouldn’t be in Basel any more. I would not have agreed to rules that are blatantly anti-American. Our regulators should go there and say: ‘If it’s not in the interests of the United States, we’re not doing it'...
I think any American president, secretary of Treasury, regulator or other leader would want strong, healthy global financial firms and not think that somehow we should give up that position in the world and that would be good for your country. If they think that’s good for the country then we have a different view on how the economy operates, how the world operates.”
Jamie Dimon, in an interview with Financial Times
Europe may consider taking Mr. Dimon up on his offer, and ban the participation of the unreformed banks and their associates from all activity in European markets until they reform themselves, and park their arrogance at the border.
But I believe that the Iceland and Sweden models are the appropriate response for dealing with reckless banking losses, that is, nationalize the bank and force the principals to eat the losses, so this might be skewing my opinion on this.
To do this, one might best consider the appropriate role of banks vis a vis the sovereignty of nations, and this is one area where I have some sympathy for those who have some sense of historical proportion, and even the Modern Monetary Theorists, who generally do not.
I think the failure to reform the banking sector when he had the best opportunity will be viewed as Obama's fundamental policy error from which all his other errors flowed. What else can one expect with advisors like Summers and Geithner.
I am rereading Berlin Diary 1934-1941 by William Shirer, and this also is probably prompting me to view some of the developments of the last three years in a slightly different historical perspective. How else can one interpret the incessant demands, the threats, the overturning of the rule of law, the endless appeasement in order to maintain order, the corruption of public officials, and the bully boy attitude of those most recently caught in frauds and massive encroachments on the public sector?
I don't think it is possible to view the US market action too cynically or skeptically today, if not in general.
The chip stocks led the way higher, with a faux fear masking the real action.
