Banks are wards of state

I realize my previous statement was not entirely clear about the banks. The banks are transmission mechanisms of debt into the system. They have proved riddled with self-regulation issues. When it came to setting optimal monetary levels in the market, the unregulated banks exploded like mosquitos too full of blood.

Unregulated finance, my ass.

Touching the debt supply, and thereby setting monetary levels, proves to be something that should be violently regulated from the core and the public institutions. Banks cannot have equity structures that reward their executives or you read non-sense from white dough boy below on the screen.

It follows that leverage is something that must be TIGHTLY regulated in the shadow banking system. Investment banks should see the amount of risk they can individually dump into the system regulated. They were polluters. With securitization markets shut down, they are not going anywhere either. They cannot dump their waste assets on investors any longer. Thank God for that.


Sacha L said…
This is really interesting.

Increasing/Decreasing M0 is pretty much the only way governments have to control M3. As the ratio between M0 and M3 increases and gets harder to control (complex financial vehicles), toying with M0 to impact M3 is like trying to poke at a bull's eye with a 100 meters stick, it is totally imprecise.

IF countries were responsible not only for M0 but ALSO for managing the key leverages (=> which would also force them to understand new financial vehicles in the first place), maybe this would lead to a much safer capitalism where the "too big to fail, too big to save" mantra doesn't happen anymore.
Marcf said…
Really what this says is that the system has grown entities that are beyond reach of the governments balance sheets. Too big to save is obviously relative to your governments capacity to re-imburse said debt through taxation (or monetary increase). What is scary is when a bank has a balance sheet with numbers so large that the countries hosting them do not have enough capital to really mount any kind of serious rescue, some french banks are > France GDP) or UBS/CH.
Anonymous said…
Anonymous said…
視訊交友網 080視訊聊天室 ※免費視訊聊天室※ ※免費視訊聊天室※ 視訊聊天室 成人影音視訊聊天室 ut影音視訊聊天室 ※免費視訊聊天室※ 視訊ukiss聊天室視訊ukiss聊天室 視訊交友90739 視訊交友90739 情人視訊網 168視訊美女 168視訊美女 168視訊美女 視訊美女館 視訊美女館 免費視訊美女網 小高聊天室 小高聊天室 aio交友聊天室 aio交友聊天室 交友聊天室 交友聊天室 線上a片 線上a片 線上a片 線上a片 線上a片 免費線上a片 免費線上a片 嘟嘟成人網站 成人漫畫 情色文學 嘟嘟成人網 成人貼圖區 情色文學成人小說 微風成人區 情色貼圖區 免費視訊聊天 免費成人圖片區 愛情公寓 愛情公寓聊天室 寄情築園小遊戲 免費aa片線上看 aa片免費看 情色SXE聊天室 SEX情色遊戲 色情A片 免費下載 av女優 俱樂部 情色論壇 辣妹視訊 情色貼圖網 免費色情 聊天室 情人視訊聊天室 免費a片成人影城 免費a片-aa片免費看 0204貼圖區 SEX情色 交友聊天-線上免費 女優天堂 成人交友網 成人情色貼圖區 18禁 -女優王國 080視訊美女聊天室 080視訊聊天室 視訊交友90739 免費a片 aio 視訊交友網 成人影城-免費a片※免費視訊聊天※85cc免費影片日本線上免費a片 免費色咪咪影片免費色咪咪影片aaa片免費看影片aaa片免費看成人影城情人視訊高雄網sex520免費影片080聊天室080聊天室aa的滿18歲影片免費av18禁影片免費av18禁影片免費av18禁影片aa的滿18歲影片聊天室ut愛情公寓尋夢園聊天室

Popular posts from this blog

The Dollar is an Asset Backed Token.

The Brotherhood is Displeased

Cavity effects in Double Slit experiments in Walker Systems