Save capitalism from the banks - Nassim Taleb

Quote from Anaconda:

Ok, whatever. Excuse me for not blindly believing whatever Nassim says.

He is a shill, btw, so good luck.
More...

Have you outperformed him?

You talk with some big guns, son.

robertdjr.jpg
 
Quote from Mvic:

...All he is really saying is bring back the original version of the Glass Steagall act...
More...
I don't know if that's all that he said, but the thought did occur to me
 
Quote from Thunderdog:

To be fair, this item was posted by someone else in the Politics & Religion forum, which does not do it justice. And so, I decided to post it here, in Economics:



Reuters Blogs
James Saft
James Saft’s blog
January 30th, 2009

Save capitalism from the banks - Nassim Taleb

Nassim Nicholas Taleb, the author of “The Black Swan: The Impact of the Highly Improbable”, has a simple proposal to as he puts it, “save capitalism and free markets from the banks.”

Nationalise the banks, limit the rewards to those who work in what he calls the “utility” part of the system and have a completely uninsured second leg that can take all the risks it wants and lose its shirt, he said in an interview in Davos at the World Economic Forum.

“They rigged the game. We pay them for their profits, there is no clawback so their incentive is to hide the risk they are taking.”

“Which is why eventually as someone who loves free markets, a total nationalisation of the part of the business that requires insurance and does clearing and payments needs to happen.”

“I am angry with U.S. policy. What we had is exactly the opposite of socialism, they got TARP to pay their bonuses and to take more risk.”

He describes his plan as Capitalism 2.0. It would have a barbell structure, with the insured utility-like part on one end and the free market bit with privatized risk on the other.

He describes banking bonuses as asymmetric because the banker gets the upside but does not share in the liability which ultimately may be funded by taxpayers, as we have seen.

Taleb, who as you may have noticed doesn’t mince words, is no fan of private equity.

“Private equity has absolutely no reason to exist. The private equity holder has all the upside and the banks all the downside.” He’d have no objection to a system where private equity funds itself via hedge funds, so long as neither party had any recourse to government insurance.

And a bit like an Old Testament prophet, Taleb is angry and wants those he thinks are responsible to suffer.

“I want them poor and they deserve to be poor.You can’t have capitalism without punishment.”

Oh, and another thing, he wants Bob Rubin, who trousered millions while chairman of Citigroup, to cough up.

“I want Bob Rubin to return his $110 million dollars to the American taxpayer.”

http://blogs.reuters.com/jim-saft/2009/01/30/save-capitalism-from-the-banks-nassim-taleb/
More...

boo hoo hoo Nassim is a crybaby like Paul Crudman
 
Taleb mentions :

Change the system...cannot win with the same system....

Cannot win with the SAME FACES SAME PLACES....

.........................................................................

Both Roubini and Taleb get the deleveraging....

Again, in simple terms there was $75 Trillion in a box....
Over $30 Trillion was eliminated....

The government wants to come to the rescue with amounts
far less....from a diminishing tax base....and from non productive means....

...........................................................................

This could not be clearer....

...........................................................................

CNBC is the "Lemmings" channel.......

They are terrible....in just about every way imaginable....
...........................................................................

Lastly....Taleb and Roubini got it right ....had and have the correct vision....
.............................................................................

Again ....cannot win with.....

Same Faces Same Places
Same Tax Structure
Same political structure
Same Stock Market Structure
Same Banking Structure

All must change....
........................................................................

My previous posts totally agree with Taleb and Roubini....

......................................................................

I like Obama because he is self made....
But it is turning out that he is just another lawyer with a podium
and has given no evidence that he knows anything about how to resolve economic issues....

Hopefully he will change....

But it does not look promising....in any way....

To take action on failed concepts and erroneous thinking
is not helpful....
..........................................................................
 
Quote from libertad:

Taleb mentions :

Change the system...cannot win with the same system....

Cannot win with the SAME FACES SAME PLACES....

.........................................................................

Both Roubini and Taleb get the deleveraging....

Again, in simple terms there was $75 Trillion in a box....
Over $30 Trillion was eliminated....

The government wants to come to the rescue with amounts
far less....from a diminishing tax base....and from non productive means....

...........................................................................

This could not be clearer....

...........................................................................

CNBC is the "Lemmings" channel.......

They are terrible....in just about every way imaginable....
...........................................................................

Lastly....Taleb and Roubini got it right ....had and have the correct vision....
.............................................................................

Again ....cannot win with.....

Same Faces Same Places
Same Tax Structure
Same political structure
Same Stock Market Structure
Same Banking Structure

All must change....
........................................................................

My previous posts totally agree with Taleb and Roubini....

......................................................................

I like Obama because he is self made....
But it is turning out that he is just another lawyer with a podium
and has given no evidence that he knows anything about how to resolve economic issues....

Hopefully he will change....

But it does not look promising....in any way....

To take action on failed concepts and erroneous thinking
is not helpful....
..........................................................................
More...

I agree.... well said.

I was hoping that Taleb might have mentioned that this crisis might not considered be a random event.

I remember all the conspiracy guys saying the fed causes booms and busts. Right as the Greenspan was saying there is no real estate bubble and allowing credit standards to be relaxed to the point of insanity.

110 percent loan to value and 5% kickout to the loan broker.

As taleb said - these guys should not be part of the attempted fix. They are criminals or criminally stupid.
 
Quote from Anaconda:


He is a shill, btw, so good luck.
More...

And you really expect anyone to believe that a guy who's been the most vocal critic of the banks over the past several years is in fact being paid by those mysterious "elites who control everything" (whoever they are)...

tin-foil-hat.jpg
 
You must log in or register to reply here.
Back
Top