3 ms·
That's an excellent piece of writing. Hopefully wide dissemination of pieces like this will start to put paid to the idea of 'too big to fail' and the idea tha
by brc 16y ago
That's an excellent piece of writing. Hopefully wide dissemination of pieces like this will start to put paid to the idea of 'too big to fail' and the idea that a government should underwrite a banks losses. That sort of thing kills long term growth and endenders moral hazard the next time a boom comes around.
- po 16y agoNew rule: governments shouldn't ask for advice about what to do in a banking crisis from a company who owns a ton of bonds in those banks. The conflict of interest and lack of accountability is astounding. Politics suck: you're in charge of a system you don't understand and the only people you can ask for advice who do understand it are sitting at the same poker table. When you go bust the public blames you as they suffer through austerity. I also loved this quote from the story: And then they saw him and said, Who the fuck was that??? Is that the fucking guy who is in charge of the money??? That’s when everyone panicked.