Where are the teeth?

I suppose that I shouldn't have expected an attempt to junk the current banking system. After all, Geithner seems to be intent on business as usual, even if the way it has been conducted has brought us to this not so pretty pass. And, like so much of the pronouncements of the past five months, it's more sound and fury signifying very little.

Joe Nocera points out some of the more egregious failures, the most serious of which violates the basic rule of capitalism: companies no matter how large should be allowed to fail. All that the new regulations will do with regards to large banks that fail is monitor these "Tier 1 Financial Holding companies" more "robustly". Then, the new rules would establish an exchange for basic derivatives, although it was the derivatives that no one really ubderstood that were really toxic. And for these little is being done.

The list goes on, but the conclusion is obvious: it wasn't the current financial system that did us in; it was the gods.

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