Thursday, October 29, 2009

Best paragraph I read last night 

An experienced team of pickpockets can have some of its members use a little street theater to distract passersby, whose wallets are then stolen by the other members of the team. The pay czar serves a similar purpose. Instead of looking at whether government-subsidized mortgage credit is a good idea, or whether the Fed is focusing on banks profitability with the overall economy as an afterthought, the pay czar gets the news media to focus on pay and bonuses.

Street theater.
Arnold Kling. I don't have as much faith as Kling that you can knock down all the bad banks and expect a new crop to come out of the ashes like a fire burns an overgrown forest and spawns healthier trees -- I wish someone would show me examples of where that's worked in banking -- but there are times I wonder what the Fed is worrying about.