Save capitalism from the banks - Nassim Taleb

There is no word "nationalization" in the Taleb's article. The man is a lot deeper than some of our simplistic comments about his article.
 
Quote from Thunderdog:

Where to begin?

I don't think that Taleb presented his idea as a magic bullet to solve all problems. Rather, I think he chose to address one component of it. As for your aversion to nationalizing banks, did you actually read the article? It's about clarity and accountability. It is about correcting the perverted risk/reward arrangement currently in place. Please read Pabst's post again. He and I don't agree on a lot of things, but I think his post sums it up nicely.
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You must be joking.

So have the government run the banks for clarity & accountability purposes? Right.
Like I said, it belongs in chit chat.

There is a simple solution to the perverted risk/reward of how the banks are run. Don't deposit your money in those that have these issues. Don't buy their stock.
It's a shocking truth, but back in the day before the central bank and federal insurance, banks had to actually have a reputation based on their actions & risk, instead of simply having a bigger institution to fall back on.

Letting all these banks fail would have been a step in the right direction. And that's the bottom line.
 
I am watching CNBC on mute right now just because I am waiting for Taleb and Roubini; they're coming on in few minutes for an interview.

I hate CNBC but can make an exception.
 
Good article by a clear thinker. I disagree that the quasi nationalisation that he is touting needs to occur though. All he is really saying is bring back the original version of the Glass Steagall act that worked well enough before Senator Gramm started tinkering with it blurring the lines between the equity requirements that were in place for speculative ventures with the reserve requirements for banks.
 
Quote from Thunderdog:

Anaconda, perhaps it is you who belong in Chit Chat. :p
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Ok, whatever. Excuse me for not blindly believing whatever Nassim says.

He is a shill, btw, so good luck.
 
CNBC is way too disrespectful. Gimmie a break, because they see it differently they are doomsayers and need prozac. They saw it right, how about dragging out Dick Bove and calling him on his B.S. This is a joke. They should not go on CNBC to be treated like this.
 
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