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There's a problem with the "go back in time" policy proposals. If the banks beat the regulations we had in place before, what makes us think they won't beat th
by tryitnow 15y ago
There's a problem with the "go back in time" policy proposals. If the banks beat the regulations we had in place before, what makes us think they won't beat them again?
This is why Taleb is proposing a simpler solution - it might be hard to get around.
I am skeptical of all proposals, but I think it's important to understand that going back to the previous set of regs might not work since the banks busted through those.
- Retric 15y agoBanks did not beat the regulation directly. They spent ~50 years chipping away until the regulations changed then another ~15 before things got really crazy. Personally if we can put the next crash off for ~65+ years before the next crash I think we will have done a great job.
- nickik 15y agoBanks made the regulations themself since ähh a very long time ago. The hole concept of central bank was pushed by banks.
- potatolicious 15y agoWouldn't Taleb's proposal itself simply be a government regulation/policy change? In other words, wouldn't it be just as easy to defeat as simply "going back in time"?
- OllieJones 15y agoFor the most part the banks didn't find loopholes in the regs, they bribed the legislature to repeal them and to cut the budgets of the regulatory agencies.