Is it reasonable to expect that the same fools who got us into this mess would be at all qualified to get us out?
Wonderful post yesterday by Barry Ritholz today titled: SEC Deregulation Let Banks Leverage Up. In it Barry writes about a brief meeting, as reported in this morning’s NYT, that took place in April 2004 that essentially paved the way for the massive leverage built up over the three years preceding the beginning of the current credit crisis which began in 2007. The culprits of that legislation are the same hooligans trying to “solve” the problem today.
While I am not sure what the near future looks like, after this bailout legislation, I am sure that it is unreasonable to expect the current leadership to be able to dig us out of this hole.