If you think about the whole financial crisis, we’ve taken people and we’ve put them in situations which basically are guaranteed to blind or, at least, to distort their vision. And we expect people to overcome that.
We all have a tendency to think of people as good or bad. And, we say, as long as we kick the bad people, everything would be fine. But the reality is that we all have the capacity to be quite bad, under the right circumstances, and I think in banking we’ve created the right circumstances for everybody to misbehave. And, because of that, it’s not such a matter of kicking some people and getting new people in — it’s about changing the incentive structure. Because, unless we change that, we’re not going to get forward."
So folks, the debt ceiling has not been raised. But don’t panic, investors, we’re not gonna default: before the vote, Republican leaders called Wall Street executives to assure them the vote was ‘just for show.’ Yeah, it’s ‘just for show’ like the sneeze guard on the salad bar. …This bill was genius, you see: the Republicans could show their Tea Party base that they’re against raising the debt ceiling, while reassuring their worry-wart Wall Street base that this was just political theater!
…And now, Republicans can say one thing to Wall Street, and the complete opposite to the Tea Party at the exact same time! Because to one of those groups, they are talking out their ass. But don’t tell me which one — I’m TiVo’ing the end of the economy."