The 600-plus page report of the US Financial Crisis Inquiry Commission should make for interesting reading for those with the patience to read it. It would be useful to wade into the argument between the Commission, which argues that the crisis was “avoidable” and the Financial Times, which argues that it was not. Maybe later. … Read moreInteresting reading
Goldman Sachs second-in-command Gary Cohn warned those assembled at the World Economic Forum in Davos, Switzerland that the drive to impose more regulation on banks could cause the next crisis by pushing risky activities towards hedge funds and other lightly supervised entities. According to the Financial Times, Cohn said: “In the next few years, the … Read moreDon’t tread on me…tread on them!
Let’s hope. Just as there are recurring themes in literature—and flies in the wake of a garbage truck–there a few things that we can reliably count on in the wake of a financial crisis. In the immediate aftermath comes damage control. The central bank intervenes. The legislature and executive agree on emergency measures. Bankers keep … Read moreLearning from our mistakes