Tuesday, October 28, 2008
Good cartoon: 7 sins
It doesn't really need commentary, but... it shows that this crisis is indeed a proof that human character doesn't really change much. The sins where there 1000 of years ago, it took 3 generations for us to forget the lessons of the Great Depression in finance (too much debt).
To me it means that mankind is incapable of learning certain things. Certain knowledge just disappears. The 'sins' are really character traits that will always re-emerge . These traits have been with us all along and are not changing.
Yet they are hardly 'deadly'. Even in the presence of those sins we have not yet eliminated our kind. In fact I would argue that some of those traits, say like pride or greed push us to action. Perhaps some of our boom and bust dynamics of doing things is a result of those psychological traits of our characters. Who knows.
Here is to financial regulation, a real-life realization that the originate to securitize model of the investment banks could not, would not auto-regulate. Sometimes market forces push for blow-ups like the spectacular one we have seen in subprime. I would argue that some of what happened there was criminal.
Too much debt kills debt. Setting debt levels must not be left to the private sector. Monetary levels must be better controlled by public sector.
One money, one world.