Wall Street Firms Will Revert to Pre-Crisis Model

Read Bloomberg article.

Yes, that is because our policymakers believe that the financial sector is an integral component of national power, which it is not.

A simple banking sector that functioned as an agent of the Federal Gov't was enough to provide financing to build 2.6 million homes in 1972, five times more than the current number and about the same level of housing starts constructed at the peak of the boom in 2006.

But in 2006, this was done via a complex and highly unstable system of intermediaries, which is what Geithner and the current Administration are desperately trying to resurrect. Unfortunately, it appears that they will be successful and the "Casino Economy" will be reborn!