Very long day of testimony today on Capital Hill. The nub of the matter comes down to what our society deems ethical versus what present laws deem illegal.
Tonight's segment where Senator Carl Levin questions Goldman Sachs CEO Lloyd Blankfein on their products, procedures and ethics hit on many of the most important questions. Whatever the outcome of the SEC legal case, I think these hearings are helpful in revealing to the masses the nature of investment banks and their business model. Our society has been doing deals with this devil for many years now to allow us to borrow and spend without restraint. Now that we have seen the peril of our ways, there is a push to get the leverage genie back in the bottle. Hopefully now it is clear to taxpayers and law makers that we should not again allow ourselves to be hostage to bailing out gamblers and their reckless bets. We need renewed rules to separate and divide legitimate banking and hedging from risk-seeking and speculating.
Cory’s Chart Corner
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