Save capitalism from the banks - Nassim Taleb

Quote from libertad:


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

You guys really have lost most of the ability to think for yourself.

Taleb says no bailouts but to nationalize the banks instead. There is not much of a difference, how the hell does he think the banks would be saved, hence funded by nationalization?

This is laughable, neither mentions the real issue nor the real problem. As for their solutions, just more bandaids.
 
Quote from ByLoSellHi:

Have you outperformed him?
More...

I don't come from a connected & wealthy family that gets me high end jobs at Wall Street pushing around worthless paper to make a fortune. But I am doing quite well, all things considering.

Apparently in your head, Taleb is the only one who saw the crisis coming. Do some research, quite a few guys called this 10 years ago and even prior. There is a lot more to this than just people making stupid bets.
 
"It is not the critic (CNBC amongst others) who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat."

Citizenship in a Republic,"
Speech at the Sorbonne, Paris, April 23, 1910 by Theodore Roosevelt

Some people mask/deal with their fear by making fun of the messeneger of bad news, as if by making fun of the messenger they diminish the import of the messege in their own mind. I think the reporters were displaying this psychological defense mechanism.
 
Quote from Anaconda:

You guys really have lost most of the ability to think for yourself.

Taleb says no bailouts but to nationalize the banks instead. There is not much of a difference, how the hell does he think the banks would be saved, hence funded by nationalization?

This is laughable, neither mentions the real issue nor the real problem. As for their solutions, just more bandaids.
More...

Taleb is not interested in saving the banks and the bailout is a completely different thing than what he proposes. Read the article again!
Taleb is talking about protecting the flow of money by nationalizing part of the banking sector. He is totally right about the current systemic risk. Unfortunately people are only willing to address it when a catastrophe occured.
I think a better solution with decent safe guards other than state owned banking layer could be developed. The current banking bailout only rewards stupidity and risk taking. The problems will be back in the future - worse than ever if they don't make major changes.
 
Talebs observations are right, but conclusions wrong, IMO.

Nationalization?

How about Creative Destruction?


Nationalization does nothing but introduce bureaucratic inefficiency and mounting losses onto an already spiraling Federal deficit.

The Government has no idea how to profitably run any enterprise - let alone an auto maker or BANK! Preposterous.

Ultimately, consumers would realize huge losses in terms dearth of products, higher borrowing costs, poor investment returns, opaque lending standards, under performing stock etc.

The answer is to clean the system out. Rather than preserve the existing bankrupt infrastructure with new ownership more INCOMPETENT than the last.
 
Quote from Thunderdog:


“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.”
More...

As far as unlimited upside for Bankers, but no downside (taxpayer backstop).

The whole system was designed that way.

Thats what the FED Reserve System IS.

A private Central banking Cartel owned and operated by Commercial Banks for profit.

Fed shareholders gear up during booms, collectivily vote to flood the economy with cheap money, then vote themselves a bailout via currency debasement when they get caught on the wrong side.

YES, its a SCAM.

But the system is not going away under Nationalization. The crux of the issue is the gigantic Moral Hazard the Banking System is built on.

We saw banks take stratospheric risk because their collective asses were underwritten by the FED, which they own.

The FED is the Moral Hazard that needs to be removed.

Either nationalize the FED and end debt-based currency, and leave current banking infrastructure, as is.

Or let all the banks fail.

Creative destruction wouldn't even stop another credit-boom. Just prolong it for a decade or two. Before the new "Elite" ramp it up again. Just for shits and giggles.
 
You must log in or register to reply here.
Back
Top