The Federal Reserve announced yesterday (Sunday Sep 21, 2008, according to the New York Times) that the still standing- but barely breathing "independent" investment banks, Morgan Stanley and Goldman Sachs) will become deposit bearing banking institutions and will be regulated under the Fed banking rules.
Is this the end of the 3rd Gilded Age? The end of investment banking and the ferocious craze of the last two decades? Or, is this the beginning of socialized investment banking, one with explicit government backing, taking in the losses, and passing on the profits, or the taxpayers of the United States have each become an investment banker?
When the critical decisions of the age are being made by non-elected officials (read Fed, Treasury, Wall Street), we're bound to go where no man has been before ....
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