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This is factually untrue, pretty much in every imaginable way...

I am not doing any twisting here... It's a simple fact that, in our current system, large institutions that are perceived to be systemically important by the authorities are not risky businesses. In fact, they are deemed to be providers of an important public good; specifically, the stability...

She's sorta right... It's not that the idea of capitalism itself is bad. It's just that, like many other successful ideas, it has fundamental imperfections/flaws that are easy to overlook and brush under the carpet. And that's exactly what happens...

Again, feel free to believe whatever your heart desires... What I have told you is a fact, however. Why would my employer care whether I post here or not?

Damn, RCG's Girl, you're one funny ghurl! Some of this sh1t is damn good!

toho, thank you for your reasoned response and for helping me understand the Swedish economy better. It's extremely useful to me, especially professionally. Reason I am skeptical about Norberg's argument is that, as far as I know, much of the wonderful growth experienced by Switzerland and...

Well, it's difficult for us to discuss things when they're defined in such a nebulous and vague fashion. For example, what specifically, in your view, makes you think Sweden "departed from liberal policy"? What, on the other hand, tells you that the US has "maintained fidelity to liberal...

I know, because I trade with him, if you must know... Whether you want to believe me or not is entirely up to you.

Yes, I see that my interpretation of the comment was possibly too narrow. I also agree with the conclusion you make regarding large companies in Sweden. However, you're wrong about the other developed countries. Specifically, in the DAX there's only one constituent company, SAP, that was...

I know what "classical liberalism" is and I know its history. What I don't understand is why we're discussing 18th and 19th century America and France in the context of the original question. I thought your point is that Sweden didn't follow the liberal tradition, which is why it's such an...

GammaJammer is 100% for real...

There's actually quite a few politicians/central bankers arnd the world that have been saying that, including, funnily enough, Uncle Ben.

I never said anything of the sort... Your conclusion is based on your construction of an incorrect argument out of the two statements I made. The key mistake you're making is assuming AIG was a risky business. It wasn't and neither were Fannie and Freddie.

If you're actually serious about this, I would absolutely love to hear how you define: a) "passionately liberal types"; b) success of America following the revolution that was due to liberal philosophy; c) failure of the liberal revolution in France;

I disagree, but, regardless, it's invalid to claim that 70s were "laissez faire" time in Sweden. [B] So what? Almost all of the major companies worldwide, not just in Sweden, were founded before 1932. Look at the constituents of the DAX, the FTSE and even the Dow. I don't see how this sort...

I haven't seen anything to suggest that AIG was saved for the exclusive benefit of Goldies. For one, I'm pretty sure "exclusive" it wasn't, given SocGen and Deutsche payouts. At any rate, there's a very important lesson here. The system, so far, seems to have been able to deal with smaller...

It doesn't matter, because: a) it's priced in; b) de-financialization of the US economy is welcome, especially if it occurs through the failure of speculators (which the majority of these banks were). c) generally, failure of risky businesses is a natural part of capitalism. Finally...

One methodology that you could implement is based on simple Sharpe ratios. Suppose you decide to enter your mean reversion trade, because your ex-ante Sharpe is greater than some arbitrary target. If your realized Sharpe, once you're in the trade, is significantly lower than what you expected...

Nah, it wasn't the downgrade... Greece was at its widest before the downgrade, on the back of the various restructuring speculations. As I said, in my view, there is no danger of ECB collateral rules materially affecting the Greek situation. Feel free to disagree. After all, it's just an...

I think you need to check your facts... Sweden went socialist in 1932, so it's not entirely clear where you get your idea of 1970s being a laissez faire time. Moreover, from what I know of Sweden, the guy in the video seems to be describing pre-90s Sweden, which was quite inefficient...