Tuesday, November 03, 2009

The Power Of Credibility 

Congress is livid with Wall Street. Wall Street says it is sorry. Congress doesn't believe it and is readying regulation to hem financial houses in. The financial houses oppose any further regulation. This only make Senators and Representatives all the more angry. There comes a time when all the PR and lobbying that one deploys is not enough because credibility is irretrievably lost. This appears to be one of those times. The best that bankers and investment houses can do is to soften pending regulations.

There isn't much of a platform that Wall Street can stand on to defend itself. It has taken billions of US funds to prop up weakened banks and insurance companies. Some of that money has been paid back. Much of it might be lost forever. Wall Street cannot argue that it regulates itself in a free market. It has proven once again that it can't.


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