If only those of Occupy Wall Street knew the truth, then they could ask for something worthwhile.
They could for instance be asking for capital requirements based on job creation ratings, because, if as tax payers we are to be the ultimate pick-uppers of any bank crisis, then we should at least be certain that the purpose of the banks is acceptable to us.
Right now, the only purpose for the banks that the regulators have de-facto defined, by means of allowing ridiculous low capital requirements for banks when lending to what is ex-ante perceived as not risky, and which allows immensely high leverage of bank equity, is for the banks to make huge profits… and that, as purposes come, seems a bit vulgar and dumb, to say the least.
(Dumb because never ever do systemic bank crises occur as a result of excessive exposure to what is perceived as “risky”, they only result from excessive exposures to what is ex-ante perceived as “not-risky”, and which are in fact the only exposures able to generate huge unpleasant surprises.)
If you allow me here is a video explaining current regulatory madness it in an apolitical red and blue! http://bit.ly/mQIHoi
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If only those of Occupy Wall Street knew the truth, then they could ask for something worthwhile.
They could for instance be asking for capital requirements based on job creation ratings, because, if as tax payers we are to be the ultimate pick-uppers of any bank crisis, then we should at least be certain that the purpose of the banks is acceptable to us.
Right now, the only purpose for the banks that the regulators have de-facto defined, by means of allowing ridiculous low capital requirements for banks when lending to what is ex-ante perceived as not risky, and which allows immensely high leverage of bank equity, is for the banks to make huge profits… and that, as purposes come, seems a bit vulgar and dumb, to say the least.
(Dumb because never ever do systemic bank crises occur as a result of excessive exposure to what is perceived as “risky”, they only result from excessive exposures to what is ex-ante perceived as “not-risky”, and which are in fact the only exposures able to generate huge unpleasant surprises.)
If you allow me here is a video explaining current regulatory madness it in an apolitical red and blue! http://bit.ly/mQIHoi
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