Floyd Norris cites John C. Dugan, the man whose agency was charged with regulating AIG Financial Products in the NYT:
[T]hey believe that the banking system on its own is unlikely to have the ability to provide enough credit to sustain an economic recovery in the United States.
Norris quotes Dugan:
“We need a vibrant, credible securitization market to help fund the real economy going forward,” Mr. Dugan said this week. He was preaching to the choir — a meeting of the American Securitization Forum — but it is an opinion widely held in financial markets.
Remind me again why all those banks were “bailed out”? Wasn’t it supposed to be to kick-start the economy again?