LOL at a systemic risk regulator

[KrazyHorse]

Watching Barney Frank on CNBC.

I suppose it'll be nice to have a fall guy the next time everything comes crashing down.

You know, assuming that a government agency won't be able to understand and control the risks in the most complex system known to man.

Good luck with that.

[VetLegion]

Just artificially limit the size of banks and problem solved. There's never been any
solid proof that financial institutions benefit from economies of scale. I'm not inventing
it, I read it on NBER.

As far as regulators, Basle II has good and bad sides. Many bad sides that directly or
indirectly led to this mess. Most of the stuff related to measuring risk, especially IRB, is
junk. However, things related to disclosure of data to the market is good stuff and should
be kept and expanded on.

[KrazyHorse]

Just artificially limit the size of banks and problem solved.

No.

[Saras]

We should shut the City and Wall Street down, and hire more cleaners and nurses:

http://www.neweconomics.org/sites/neweconomics.org/files/A_Bit_Rich.pdf

http://www.ft.com/cms/s/0/7e3edf6e-e827-11de-8a02-00144feab49a.html

Economics

[KrazyHorse]

The authors assume the financial crisis and recession would not have happened without City bankers engaging in risky, opaque and complex transactions.

Good article.

Also, it appears that the authors of the study don't understand the difference between average and marginal productivity, or at least not why pay should be based on marginal productivity and not average productivity...

[Saras]

Hippies providing countless occasions for amusement to while away the hours between deeply destructive work in M&A -

[Felch]

The banking sector should be run according to mafia rules. If you **** up our money, we burn your house to the ground, break your spine, murder your family, and leave you to wallow in your own uncontrollably evacuated excrement.

I think that would work. Or at least it would make for an awesome pay-per-view special.

[KrazyHorse]

Saras works in the former East Bloc. I'm pretty sure those are the rules he plays by.

[KrazyHorse]

Come on, nobody's going to defend the assertion that a systemic risk regulator will be able to manipulate the markets so that bubbles and crashes never happen?

[DanS]

I got nuthin'

[Saras]

Saras works in the former East Bloc. I'm pretty sure those are the rules he plays by.

10+ years, baby. There are many widows in this industry.

[MrFun]

Come on, nobody's going to defend the assertion that a systemic risk regulator will be able to manipulate the markets so that bubbles and crashes never happen?

[KrazyHorse]

Then you understand the financial system better than the House Financial Services Committee chairman does.

[KrazyHorse]

Barney Frank is obviously a smart dude, but I don't think he's very intellectually honest. It's a bad combination when you take into account the power he wields.

[MrFun]

He has some good ideas concerning some issues, but I definitely do not agree with where he stands with this.