The US financial are in the hands of the Federal Reserve Bank and US Treasury. Both Bernanke and Geithner spoke today, and both to me proved the US economy is going to get much worse.
Bernanke didn't talk about creating tougher laws for financial industry to follow, tightening fractional lending, or restoring Glass-Steagall (Put in place LAST great depression to prevent what IS happening now). Instead his solution is to increase government BUREAUCRAT power to "use judgment" to go after companies and intervene when required. If America does this, we DESERVE what happens next. A free country does well when particpants have clear laws that act as a regulation for business. Having government entities "overseeing and interfering" with private business is borderline communist.
Quote on article on US Treasury commentary, Geithner:
Government officials will not set new capital and leverage standards for financial institutions until next year, Treasury Secretary Timothy Geithner said Thursday.
"The world is a little fragile; people aren't willing to take enough risk now, and we don't want to do anything that would push people to delever," Geithner said to Fox News Sunday anchor Chris Wallace at an event in Washington hosted by the Atlantic magazine in partnership with the Aspen Institute and the Newseum. "We'll have the agreement on the numbers, but it won't happen until next year; in the absence of fragility."
Geithner acknowledged that existing bank-capital restrictions were "too low and easily evaded."
The government KNOWS bank requirements are too low and easily evaded, the US is in the midst of a financial crisis, AND the government states it doesn't want to do its job out of fear of market reaction! You got to be kidding me! Haven't you heard, everything is fine, mind you, said by these very people! Why be afraid?
this is like the referees at a basketball game deciding to not call fouls out of fear the players would hit them. The game is broken folks. And not addressing this is frankly a shirking of responsibility placed directly on the US treasury.
Since no one seems to think either of the above is a problem, then THAT is the problem, and hence, sealing our Greatest Depression.
Assuming both of these events come true, this is another FINANCIAL GROUND ZERO moment, for now it just deserves attention before being elevated to another nail in the US coffin.