It's EXACTLY "cognitive regulatory capture", you moron

In The New Yorker. James Surowicki claims:

[T]he very first explanation [of the Geithner plan is] that the Administration is following its current strategy for dealing with the banks (a mix of regulatory forbearance and government subsidy in the form of debt guarantees and capital injections) because it believes “it’s the proper course of action, because most banks will be able to earn their way out of their problems if given some time and forbearance by regulators.” Oddly, this simple explanation—that Barack Obama, Tim Geithner, and Ben Bernanke have adopted their strategy because they think it has the best chance of getting the economy back on track while taking the least systemic risk, rather than because they’re stupid, or corrupt, or “cognitively captured”—is one you rarely hear floated these days, even though it is, I think, almost certainly true.

So, because Obama, Bernanke, Summers, and Geithner all earnestly believe that a little nip and tuck are all that the Wall Street system needs; that means there hasn't been "cognitive regulatory capture."

No, you moron, it's exactly because they all earnestly hold that belief -- overriding every other economic concern, including that the taxpayers shall be adequately compensated down the line should their assumption of the risks pay off -- that demonstrates that Washington's financial elite have succumbed to "cognitive regulatory capture."

Meta: 

Comments

Cognitive Regulatory Capture

I'm not sure if the term regulatory captures what is happening.

These people are simply doing exactly what the Zombie banks, power elite want, so they are assuredly captured as in puppet masters of an inane mentality, not based in what is best for the nation, the taxpayer, the economy.

But regulatory? That seems to imply they would be interested in putting some serious regulation in place and from what I can tell to date, it appears all policies are about feeding every last dime to these various financial institutions and people who are really running the nation and anything in the national interest be damned.

NDD, your call out made me think we should do a new series....

maybe too "Bill O" but I sift through idiotic, corporate press kit, or politically motivated rewritten not factual garbage every week in the MSM.

Maybe we need a weekly call out for being an idiot on some of these articles.

I seriously believe alot of journals cannot or will not do their own homework and considering the state of media these days (I think they are not making a hell of a lot of money perhaps?) maybe that's the reason.

Or maybe it's that the sense of ethics so ingrained in some of us older folk are just thrown out the window.

You must have Javascript enabled to use this form.

Weekly "Moron" Call-out Idea

I think that is actually a very good idea. I was talking with someone today about the complexity of the Chrysler bankruptcy and it occurred to me that (to use that situation as an example) many ordinary people really do not understand the ramifications of the bankruptcy. Marcy Wheeler has written about the bankruptcy on her blog and on DailyKos---and I know she comes from a "Michigan" perspective. In reading the comments to her diaries re: Chrysler, it seems apparent to me that most people truly do not know all that's involved with Chrysler, and by extension, with the Big Banks. The media is largely worthless (IMHO) on these issues----if it weren't for the econ blogs, I would know less than nothing about much of this. I think people are hungry for good information---and the media is NOT providing it. My local newspaper is a joke when it comes to econ issues---doubly worse because two cities in south-central WI (where I live) are being decimated due to the closure of the GM plant in one of them and which provided a ton of jobs for both cities. So . . . I know it's a LOT of work to focus on trying to clarify for ordinary people even ONE article a week that falls into the "Moron" category----but I'd be glad to push it over on DailyKos to come here and check out anything you can do in this line.

You must have Javascript enabled to use this form.

I have been reviewing the latest

legislative regulatory proposal. It certainly won't do anything from preventing "too big to fail" institutions. It addresses monitoring risk but that is a joke considering the fallibility or potential ideology of regulators.

The Obama Administration is fighting re-establish the status quo.

You must have Javascript enabled to use this form.

Biting my lip to keep from laughing

Sorry to be a bit juvenile, but it's 4:23 PM on a Friday afternoon and I clicked over here because I haven't had a chance to check your blog this week---only to find you (who seem to be pretty low-key) calling that writer a moron! Just made me want to giggle that you "lost it" but at the same time, I don't blame you a bit. Reading the paragraph you quoted here gave me a flashback to the Educational Psychology class I "endured" while in college. That phrase (cognitive regulatory capture) sounds terribly similar to some of the ed. psych. moronic jargon I had to wade through. Tying this in with Dick Durbin's comment a few days ago that the Senate is "owned" by the banks . . . well, I don't think it can be made much clearer than that. Reform of the banks and financial system doesn't seem like it's ever going to be possible--there are too many people vested in keeping the status quo for the Big Banks. And I do wonder where this is all going to end up for the taxpayers.

You must have Javascript enabled to use this form.

It's also astounding that

It's also astounding that http://www.cerberuscapital.com/ was alowed to acquire such a public icon via private means.
Again, another failure (among many, many...) on the part of the FTC, and a reaffirmation that the U.S. has long needed an "Industrial Policy." Can we spell...Industrial Pol...

You must have Javascript enabled to use this form.