Goldman Sachs, Morgan Stanley Scrap Wall Street Model,

[walt]

Goldman, Morgan Scrap Wall Street Model,
Become Banks in Bid to Ride Out Crisis

DOWNRIGHT SCARY....
http://online.wsj.com/article_email/SB122202739111460721-lMyQjAxMDI4MjIyMTAyMjE3Wj.html


The Federal Reserve, in an attempt to prevent the crisis on Wall Street from infecting its two premier institutions, took the extraordinary measure on Sunday night of agreeing to convert investment banks Morgan Stanley and Goldman Sachs Group Inc. into traditional bank holding companies.

With the move, Wall Street as it has long been known -- a coterie of independent brokerage firms that buy and sell securities, advise clients and stay less regulated than that of old-fashioned banks that take deposits and lend money -- will cease to exist



Now, the parent companies of almost all major U.S. financial institutions will be overseen by the Federal Reserve. Sunday night's development also further expedites the ascendancy of the Fed as universal supervisor, as it now has even more direct authority over nearly all financial companies in the country.

[BarryDonegan]

are you kidding me?

this is pretty freakin transparent. if people cannot see what is happening here, they do not have eyes in their head.

[walt]

are you kidding me?

this is pretty freakin transparent. if people cannot see what is happening here, they do not have eyes in their head.

No, not kidding, I once got an F in creative writing, long, long ago. :(

[walt]

Why is Barry the only one freaked out about this?

[MsDoodahs]

He's not the only one freaked out, just the only one commenting in this thread so far.

I think we're all pretty much in shock over this crap that is going down fast and furious...

[Philadelphia76]

I think the problem is that a lot people (including some among the RP movement) aren't prepared to suffer through an economic catastrophe to realize the dream of limited government and dissolution of the federal reserve. Love 'em or hate 'em... most experts agree that given the current system had Bernanke/Paulson done nothing (no bailouts) and tightened up the currency... we would have found ourselves in a world-wide Depression (absolutely no lending for production). A veritable Great Depression II. People hear that and worry. That's tough medicine (as Dr. Paul correctly calls it) for any one to swallow down. Of course, Ron Paul and many of his supporters prefer to swallow the tough medicine now rather than down the line when it stands to be much worse... But you can't under-estimate how bitter a medicine to swallow it already is nor the human inclination (even amongst Libertarian Conservatives) to avoid swallowing it as long as possible in the irrational hope that it will simply go away. Scary.