As if a salve for people like me who have to go back to work tomorrow, Michael Lewis hits the New York Times Op-Ed pages this weekend with TWO articles with cheery titles. The End of the Financial World as We Know It and How to Repair a Broken Financial World.
Gleaned from these articles are 7 ways to begin the recovery:
1. “Congress might grant qualifying homeowners the ability to get new government loans based on the current appraised values without requiring their bankâ€™s consent.”
2. “Stop making big regulatory decisions with long-term consequences based on their short-term effect on stock prices.”
3. “End the official status of the rating agencies.”
4. “Regulate credit-default swaps.”
5. “Impose new capital requirements on banks.”
6. “Break up any institution that becomes too big to fail.”
7. “Close the revolving door between the S.E.C. and Wall Street…But keep the door open the other way.”
The funny thing is, thereâ€™s nothing all that radical about most of these changes. A disinterested person would probably wonder why many of them had not been made long ago. A committee of people whose financial interests are somehow bound up with Wall Street is a different matter.