Bedtime Stories

That there used to be these things called, "investment banks" and that they lasted for hundreds of years in America, across all sorts of financial ups and downs - until the age of George Bush the Lesser.

Then, it was found that these banks lost their way, amidst a sea of unregulated acronyms like CDO and fierce beasts known as swaps - which were supposed to be financial instruments to manage risk. And these tools made the banks wealthy until they grew too unwieldy to maneuver with grace and dexterity and they were hoisted on their own petards.

And then, make sure you let your children know, that although the favorite American boogeyman - black people - were trotted out to be slaughtered upon the ritual alter of the scapegoat, a wise young politician led the people to stay their hand with these words:

"You chumps! The CRA is for commercial banks, not investment banks. Commercial banks road through the CDO storm just fine - barring a savings and loan or two (and you know they always catch hell). Nay, it was not the presence of CRA or any other regulation - but the lack of regulation that allowed the insurance companies and the investment banks to fly too close to the sun. Begone!"

Sphere: Related Content