Is the problem the lack of regulations on Wall St or the sheer unwillingness of the legislators to understand risk at any level?
Risk is not hard to grasp. I found poetry and organic chem to be difficult espescially if I wasn't exposed to the intricacies everyday. It's fair to say most sane people and most people that would purposefully tune into financial news broadcasts would have a pretty solid concept of risk and the nature of risk in the confines of investment banking.
Sen Merkley - an idiot with an agenda - decides to come on Financial TeeVee to tell you, me and anyone else that has managed a business or set-up more than one personal account, that he will insist JP Morgan should have been making loans available to the general public (a whole nother aspect of risk that this dope must have forgotten about - subprime anyone?) rather than maintain a hedge. He was reminded that this was JPM's money, not TARP not Tax money, not Client money (although the shareholders ultimately benefit from ameliorating risk). Facts are not good enough for Jeffy! He's got an agenda!
"woulda-shoulda-coulda"... is Jeff's solution to a molehill not becoming a mountain.
Sure, it's a knee-jerk post on my part, but after witnessing this dope on CNBC stick to his guns I am reminded that this guy is probably one of the "smarter" members of the US Senate... Oh we reap what we sow indeed!
I want to add that it is the pre-text of "woulda-shoulda-coulda" that usually breeds failure.
Here's the video that ruined chess' fritters :)
http://video.cnbc.com/gallery/?video=3000090999&play=1
ikaika
2 comments:
Yeah, if all banks and mutual funds just eliminate loss making trades and just invest those proceeds (from client money) into the economy, we will have a boom. But who will identify those loss making trades before making them? If he understands that, he will understand risk.
Yea...saw that also.It ruined my huge ball of deep fried goo I call a fritter.As i have told Tom before---you are thinking with your brain...Stop that.. And I am sure somehow Mitt "the whale" had something to do with this..Just ask Axlerod.
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