Friday, October 16, 2009

Hey, He Noticed

Got this in my inbox this morning. Excerpts from Summers speech:

"There is much in the way the financial system functions in America and around the world that is essential to preserve. And yet the events of the last two years are the culmination of a remarkable sequence of financial problems. Roughly every three years for the last generation a financial system that was intended to manage, distribute, and control risk has, in fact, been a source of risk – with devastating consequences for workers, consumers, and taxpayers."

"Think about it. The last generation has seen:

The Latin American debt crisis

The 1987 stock market crash

The savings and loan debacle

The Mexican financial crisis

The Asian financial crisis

The collapse of LTCM

The bursting of the dot-com bubble

And now the financial crisis that began in 2007."

"One crisis every three years."

"Surely a system that produces this many accidents and accidents this severe is a system that is in very much need of reform."

“There is no financial institution that exists today that is not the direct or indirect beneficiary of trillions of dollars of taxpayer support for the financial system. This has direct relevance on the changing nature of the social compact between the financial sector and the broader economy.”

“The time has come for fundamental change in the financial sector of our economy – both in how financial institutions conduct their business and how they are regulated.”

“Financial institutions that have benefited from government support can, should, and must use this moment to think about what they can do for their country – by accepting the necessary regulation to protect the American people.”

“The events of the past two years should serve as a wakeup call for the financial industry.”

“Wall Street was no small part of the cause of the crisis and Wall Street needs to be part of the solution.”

“President Obama came to Washington committed to change the way business in government is done. What we are able to do with financial reform now, in the wake of the financial crisis, is an important embodiment of that commitment. In order to usher in the “new era of responsibility” that the President called for at his Inauguration, we must ensure that we do not go back to the kinds of abuse that helped cause this crisis in the first place.”

“The House Financial Services Committee took an historic step in this direction yesterday when it voted to bring previously unregulated derivatives under the regulatory umbrella.”

“We in the Administration are determined to create economic expansion and growth not based on financial bubbles, but instead on real production and distribution of goods and services for the benefit of all the citizens of our country. That is a lesson not just of this most recent crisis, but of the agonizing pattern we have witnessed eight times during the past three decades.”

“It is our duty – for the government, the financial sector, and everyone else in this debate – to break this cycle and build a new, stronger, and more inclusive foundation for the American economy.”

All those crises that no one could have predicted. Makes one wonder if it's a feature, not a bug...