11–20 of 140 posts
No thanks. We would be better off to head straight through the black hole, full speed ahead. It will be painful for a few years but we'll come through the other side with cleaner balance sheets and sustainable government budgets.
"Bold" action by the politicians and the central banks created much of the current mess. If we'd just cleared the pipes by letting the banks fail, recapitalizing new banks, and basically rebooting the financial system, we'd be much further along. Instead, we got bailouts and crony capitalism and ad hoc intervention, and today the global system is in many ways in worse shape now than in 2008. (Banking is more concentr…
"Bold" action by the politicians and the central banks created much of the current mess. If we'd just cleared the pipes by letting the banks fail, recapitalizing new banks, and basically rebooting the financial system, we'd be much further along. Instead, we got bailouts and crony capitalism and ad hoc intervention, and today the global system is in many ways in worse shape now than in 2008. (Banking is more concentr…
Please tell us how that works in practice rather than in theory. I really, really want to know how you just 'reboot' the financial system without massive disruption to retail banking or the payments system. How do you 're'capitalize a new bank? If you just mean create new banks, who is running these banks? I mean, I'd like to have seen a complete reboot of the system as well, but it looks like the sort of thing that is much easier said than actually done. If you're going to mention Sweden, provide specifics of how long it took and how much capital was involved.
"Bold" action by the politicians and the central banks created much of the current mess. If we'd just cleared the pipes by letting the banks fail, recapitalizing new banks, and basically rebooting the financial system, we'd be much further along. Instead, we got bailouts and crony capitalism and ad hoc intervention, and today the global system is in many ways in worse shape now than in 2008. (Banking is more concentr…
What I find interesting is how an impending Chinese squeeze would affect American markets. Their economy has been steadily dropping, but with all eyes on Europe no one has really looked into it.
"Bold" action by the politicians and the central banks created much of the current mess. If we'd just cleared the pipes by letting the banks fail, recapitalizing new banks, and basically rebooting the financial system, we'd be much further along. Instead, we got bailouts and crony capitalism and ad hoc intervention, and today the global system is in many ways in worse shape now than in 2008. (Banking is more concentr…
We shouldn't practice financial regulation like it's holistic medicine. Metaphors about cleaning the pipes and taking the pain should be weighed against the evidence we have about what happens when you let banks fail, and that didn't go very well when we did it with Lehman Brothers.
Earlier quoted context omitted.
We shouldn't practice financial regulation like it's holistic medicine. Metaphors about cleaning the pipes and taking the pain should be weighed against the evidence we have about what happens when you let banks fail, and that didn't go very well when we did it with Lehman Brothers.
So far this year, 73 US banks have failed, with resolution handled by the FDIC. Bank failures don't have to be horrific. We would arguably be better off as a country if rather than bailing out the big banks they had been taken over, recapitalized, and reprivatized.
While the greater point may be true, it does have the benefit of hindsight to a certain degree.
At the same time - after seeing the effects of Lehman's collapse, the regulators really didn't have any other choice than saving those banks. The option of not acting really wasn't there.
"Bold" action by the politicians and the central banks created much of the current mess. If we'd just cleared the pipes by letting the banks fail, recapitalizing new banks, and basically rebooting the financial system, we'd be much further along. Instead, we got bailouts and crony capitalism and ad hoc intervention, and today the global system is in many ways in worse shape now than in 2008. (Banking is more concentr…
You mean like a free market economy?
That article has almost zero factual content to back up it's assertions. This kind of nonsensical ravings really grate me. Don't write something like 'witness the increasingly dark economic backdrop' or 'America’s economy is still limping along' without some hard numbers. This article attempts to support those statements with broad general commentary like 'summer slump in share prices and consumer confidence suggest…