Still waiting on my flight, so here's another clip from CNBC's surprisingly excellent, morning broadcast. Readers know that we've come to appreciate regional Federal Reserve President Thomas Hoenig's predilection for candor. Though he was late to dissent, Hoenig has recently been showing his independence from B-52 in his continuing call to allow large banks to fail and fall into government receivership.
I'm comfortable with giving up the charade anytime now. We're going to have to deal with Citigroup in an adult manner sometime in the next 12 months when they return looking for capital. Their off-balance sheet issues alone are enough to kill them, let alone the morass they do keep on the books.
So, it's refreshing to hear voices from Washington (Kansas City in reality, which could explain his forthrightness) that echo our belief (and yours) that certain failed institutions should actually be allowed to fail and their bondholders be asked to take the losses instead of taxpayers. But that's an old rant which you've read many times before. If only Bernanke, Geithner, Summers and Obama would listen. Fat chance to expect those beholden to the banking oligarchy to change their stripes, yet I remain optimistic, almost every day.