You pretty much paraphrased "The Creature From Jekyll Island." Not only has the author been uncannily prescient, but considering his thesis on the end game, I sincerely hope he is wrong for once.
Its not Rocket Science, brother. The Goldsmiths have been running this scam for a long time. If you want to get apocalyptic for a moment, consider total outstanding private debt. Somewhere around 60 Trillion. Each dollar represented in that amount - either paper or electronic - is real debt accruing interest payable to the Federal Reserve, a Bond holder, or a fractional-reserve bank. When total debt gets to 90 Trillion, total interest payable begins to eclipse federal income tax revenue. That means, people will begin to pay more to bankers (in interest) than to the IRS. Its actually a parabolic equation that will eventually consume the country's entire productive output. Then the nation goes into receivership, based on defaulted debt conjured from thin air. A slow motion logic bomb, as it were. Thats if we make that far, of course.
Watch the video closely and notice the subliminal attacks on the credibility of Taleb and Roubini... It's all over the place and don't think it's an accident or these CNBC'ers are just stupid... They are very very well trained foot soldiers who have mastered the art of propaganda like no other... Sad.
Just wondering... What percentage of institutional bankers, traders... would keep their jobs if they had to suffer "maluses" as well as "bonuses"? Not more than 30-40% I think. Note that they would still be advantaged with their base salary compared to an entrepreneur or self-employed.
If the companies who got their asses handed to them would have been allowed to crash and burn and suffer the consequences of having no risk control, we would be in much better shape for the future. Right now what we have is pretty much the worst of everything - crappy companies that are on life support, are draining taxpayer money, are not performing their normal activities, and are using taxpayer funds to compete with healthier companies thereby making the whole system weaker. Let them all fail for their atrocious mistakes - if you don't believe that then you don't believe in capitalism.
Government has no place in regulating the flow of money. Anyone who does not understand this does not know the history of money & banking. He is essentially suggesting taking the flow of money from the current crooks and handing it over to their buddies next door. The only thing government should concern themselves with is that the currency is sound. And he did talk of nationalizing the banks right on CNBC.
Of course, we should leave those activities for private entities who can allocate it perfectly like Chuck Prince or Stan O'neal
http://www.mutualimprovement.com/2006/09/understanding_s.html just think if joe lunchbucket understood survivor bias, would turn the industry on its head.
Taleb's argument seems completly consistent with the laissez faire most ET subscribe to. Its not that he is saying that some banking activities need to be nationalized because a large government is good, he is saying some bank activities are like the army, justice system, etc Heck maybe even Ayn Rand would agree with this when you presented her the evidence that all bank profits in history were wiped out in early 80's I believe the same is happening now and the government is paying the bill. Clearly the free market doesnt know how to run banks. Banking crisis happened even during the gold standard, so the argument the paper money make people crazy is nuts
Do the Taleb's comments from yesterday look much more realistic today after that moronic Geithner's speech? I thought so! Listen to the MAN! He knows!