Don't Bank On Bankers!

Am I trying to start a financial panic by undermining confidence in the geniuses who run our big financial institutions? Well, no, they already did that. In the Paul Krugman article I posted earlier today, Jamie Dimon, the head of JPMorgan Chase, was quoted as telling the Financial Crisis Inquiry Commission that a crash "happens every five to seven years. We shouldn't be surprised." Isn't that nice? Reminds me of the guys who say that anthropogenic global warming isn't possible because God created the world with the temperature He wanted, and we're not capable of undoing His work.

So, the follow-up to Krugman's piece in The New York Times is this David Gross essay from Slate.com. Gross's key statement is this:

"Rule No. 1: The banks have no idea what kind of regulation is good for them.
"Rule No. 2: If you ever think the banks have a point, remember Rule No. 1."

There's an old saying. "If you believe the doctors, no one is healthy. If you believe the police, no one is honest. If you believe the soldiers, no one is safe." (There's a nice double-edged quality to that line.) So, if you believe the bankers, no one is solvent.