Dylan Ratigan: "We Are Falsely Perpetuating Failed Businesses Like Citigroup And AIG" (VIDEO)

CNBC anchor Erin Burnett and MSNBC anchor Dylan Ratigan appeared on the "Today Show" this morning to discuss the one-year anniversary of the collapse of Lehman Brothers, which marked the beginning of the financial crisis. Both hosts agreed that the nation's economy had been very close to grinding to a halt and that the measures taken to jump-start the economy had been necessary.

However, while the economy appears to be lifting itself out of the recession in technical terms, Burnett noted that it won't feel that way to the average person, as unemployment remains high and the housing market has yet to recover.

Ratigan said that the "natural cleansing" the market needs after such a a calamity is not occurring because there are:

so many businesses in this country that have proven themselves unable to function without being supported by the taxpayer. Because we have business models that have proven themselves not viable independently... we don't have a natural cleansing in business because we are falsely perpetuating failed businesses like Citigroup and AIG.

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Comments

[not going2take it]

As relates to (lack of') posts to this blog.
People are not paying attention...

[dadw5boys]

The Businesses only failed after they got greedy and not in business to trade fairly with consumers.

[BigPictureReg]

Once again, if it generates a profit today, go ahead and do it.

http://www.istockanalyst.com/article/viewarticle/articleid/3431386

In recent days, five, virtually worthless stocks have generated volume equal to roughly 30% of the trading volume on the entire New York Stock Exchange. These stocks only have the value of less than 1/2 of 1% of the S&P500.

What will the SEC do about it?

[balancedsolution]

DYLAN - YOU ARE RIGHT!

WHY CAN'T THE ADMINISTRATION SEE THIS?

The fact that Obama has continued a lot of Bushies policies makes me sad.

The fact Obama doesn't understand America is ADD and needs 10 second Sound Bites is what he needed when trying to establish a health plan.

He's a professor which is great, but the average ameridiot can't handle the long thought processes.

If health care (true) reform fails....say goodbye to our country as we knew it. MOre foreclosures, bankruptcies and people getting cheese in the streets.

[ImAliberal22]

Why is it so hard to find good, progressive leadership in America?

good articles for a slow news day: http://www.iamned.com

American needs help.

[ImAliberal22]

yea thats some

[msjimmied]

As to perpetuating failed businesses...

http://seekingalpha.com/article/160619-the-coming-consequences-of-banking-fraud?source=hp_mostpopular

[Clayton139]

There should be a hard clensing of Wall Street !

A system was buit with Greed, Money and Lobbyist in Washingington DC that has FAILED America BIG TIME ! ! !

[olympus6]

"unemployment numbers are a strong sign of weakness"... Absolutely genius Matt-where would we be with out you, and your $10 mil per year "this is my serious leg-crossed look".

[sonofsamphm1c]

Ratigan is basically recommending amputation (cleansing) for a brain tumor.

I guess he thinks it worked for him.

[bramapanzer]

Look at the books of citi and aig, both are underwater to the tune of hundreds of billions of dollars, and they say this publicly. They are literally worth NOTHING. The only reason they have any value on the exchanges is the implied government backstop. They have no way of becoming profitable through normal business operations.

[GianRico]

There's a party tonight on Wall Street after the President tells them to police themselves. Any analogy will work here 'like asking the fox to guard the henhouse'...'Willie Sutton to guard the bank'......
It has been inherent on Wall Street historically to design financial instruments to skirt or avoid the existing regulations or confuse the regulators. Now, after their inability to curtail their glutony for excessive pay and bonuses with our tax dollars after their house crashed, the President is asking the impossible. That smacks of giving in to well heeled lobbyists and forsaking the wishes of the American people. We need regulatory reforms and a Congress with the courage and ethics to enforce the rules.