Sunday, February 15, 2009

Restructuring US Banks & Slaying Zombie Institutions

Why is Obama Reluctant to Kill the Zombie Banks Threatening Our Economy?

The battle lines over how to deal with the banking crisis have been drawn. On the one side are those who know what needs to be done. On the other are those who know what needs to be done -- but won't admit it. Because it is against their self-interest.

Unlike the conflict over the stimulus package, this is not an ideological fight. This is a battle between the status quo and the future, between the interests of the financial/lobbying establishment and the public interest.

What needs to be done is hard but straightforward. As
Martin Wolf of the Financial Times sums it up: "Admit reality, restructure banks and, above all, slay zombie institutions at once." … Arianna – Huffington Post, New York, + FrankKalder’s Huffpost comment

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