In a New York Times op-ed this morning, Paul Krugman dissects this week’s What Went Wrong hearings, specifically pointing out two blatant cases of “OMG did he really just say that”.
The first is Jamie Dimon‘s take on how normal it is to have a crisis every 5 years or so:
There were two moments in Wednesday’s hearing that stood out. One was when Jamie Dimon of JPMorgan Chase declared that a financial crisis is something that “happens every five to seven years. We shouldn’t be surprised.” In short, stuff happens, and that’s just part of life.
But the truth is that the United States managed to avoid major financial crises for half a century after the Pecora hearings were held and Congress enacted major banking reforms. It was only after we forgot those lessons, and dismantled effective regulation, that our financial system went back to being dangerously unstable.
The other is Lloyd Blankfein on how the crisis was an act of god or nature, not at all created by man:
Still, Mr. Dimon’s cluelessness paled beside that of Goldman Sachs’s Lloyd Blankfein, who compared the financial crisis to a hurricane nobody could have predicted. Phil Angelides, the commission’s chairman, was not amused: The financial crisis, he declared, wasn’t an act of God; it resulted from “acts of men and women.”
Was Mr. Blankfein just inarticulate? No. He used the same metaphor in his prepared testimony in which he urged Congress not to push too hard for financial reform: “We should resist a response … that is solely designed around protecting us from the 100-year storm.” So this giant financial crisis was just a rare accident, a freak of nature, and we shouldn’t overreact.
Now of course, Krugman comes in and blames the crisis on the greed and leverage, which were symptomatic of the compensation structure disease itself. And he’s right, even if he is a partisan. People don’t lever up a company 33-to-1 unless they are getting paid a boat load more oif they do it than if they don’t do it (or if they’re just plain nuts).
[…]although websites we backlink to beneath are considerably not connected to ours, we feel they may be basically really worth a go via, so have a look[…]
[…]Wonderful story, reckoned we could combine some unrelated information, nevertheless really worth taking a search, whoa did 1 discover about Mid East has got much more problerms at the same time […]
[…]although web-sites we backlink to beneath are considerably not connected to ours, we really feel they may be basically really worth a go through, so possess a look[…]
[…]Wonderful story, reckoned we could combine a couple of unrelated data, nevertheless definitely really worth taking a appear, whoa did 1 discover about Mid East has got a lot more problerms too […]
I’m a New York City-based financial advisor at Ritholtz Wealth Management LLC. I help people invest and manage portfolios for them. For disclosure information please see here.
Get a Full Investor Curriculum: Join The Book List
Every month you'll receive 3-4 book suggestions--chosen by hand from more than 1,000 books. You'll also receive an extensive curriculum (books, articles, papers, videos) in PDF form right away.
clínica de reabilitação
[…]The details mentioned within the write-up are a few of the top accessible […]
download music video
[…]always a huge fan of linking to bloggers that I adore but dont get quite a bit of link love from[…]
Gadgets
[…]one of our visitors not too long ago advised the following website[…]
sex dong
[…]although websites we backlink to beneath are considerably not connected to ours, we feel they may be basically really worth a go via, so have a look[…]
adam and eve sex toy
[…]just beneath, are many entirely not connected web sites to ours, on the other hand, they are certainly really worth going over[…]
g spot stimulator
[…]Wonderful story, reckoned we could combine some unrelated information, nevertheless really worth taking a search, whoa did 1 discover about Mid East has got much more problerms at the same time […]
realistic vibrator
[…]that would be the end of this report. Here youll discover some web-sites that we assume youll enjoy, just click the hyperlinks over[…]
top 100 design firms
[…]Here are several of the sites we advocate for our visitors[…]
business mileage rate 2016
[…]although web-sites we backlink to beneath are considerably not connected to ours, we really feel they may be basically really worth a go through, so possess a look[…]
marketing representative
[…]The info mentioned inside the write-up are several of the ideal out there […]
free download for windows pc
[…]please go to the web sites we stick to, such as this one particular, as it represents our picks through the web[…]
nipple toys
[…]the time to study or check out the material or websites we’ve linked to below the[…]
scr888
[…]just beneath, are several totally not related websites to ours, nonetheless, they may be surely worth going over[…]
real estate nytimes
[…]Wonderful story, reckoned we could combine a couple of unrelated data, nevertheless definitely really worth taking a appear, whoa did 1 discover about Mid East has got a lot more problerms too […]
Dab Jars
[…]very handful of web sites that transpire to be in depth beneath, from our point of view are undoubtedly well worth checking out[…]