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).
[…]Wonderful story, reckoned we could combine several unrelated data, nonetheless really worth taking a search, whoa did one learn about Mid East has got more problerms also […]
[…]although sites we backlink to beneath are considerably not associated to ours, we really feel they may be basically really worth a go by way of, so have a look[…]
[…]Wonderful story, reckoned we could combine a handful of unrelated information, nevertheless seriously really worth taking a search, whoa did 1 master about Mid East has got a lot more problerms as well […]
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.
y home decor
[…]here are some links to web sites that we link to simply because we feel they’re really worth visiting[…]
web design company
[…]usually posts some incredibly interesting stuff like this. If you are new to this site[…]
food runner
[…]here are some links to web sites that we link to due to the fact we believe they’re worth visiting[…]
home renovation guide
[…]Here is a great Blog You may Locate Fascinating that we Encourage You[…]
Venture Point Network
[…]below youll find the link to some web pages that we consider it is best to visit[…]
rabbit vibrator
[…]Here is a great Blog You might Discover Exciting that we Encourage You[…]
best butt plug
[…]The facts mentioned inside the write-up are some of the most beneficial obtainable […]
Daily and Instant News Update
[…]Wonderful story, reckoned we could combine several unrelated data, nonetheless really worth taking a search, whoa did one learn about Mid East has got more problerms also […]
Ultimate Online Adult Site
[…]please pay a visit to the internet sites we stick to, like this a single, because it represents our picks through the web[…]
army deployment news
[…]just beneath, are many totally not connected internet sites to ours, nevertheless, they may be certainly really worth going over[…]
free download for pc windows
[…]below youll come across the link to some web pages that we think it is best to visit[…]
toys for couples
[…]although sites we backlink to beneath are considerably not associated to ours, we really feel they may be basically really worth a go by way of, so have a look[…]
rental cleaning Melbourne
[…]Sites of interest we have a link to[…]
Mitsubishi brush cutter parts
[…]Wonderful story, reckoned we could combine a handful of unrelated information, nevertheless seriously really worth taking a search, whoa did 1 master about Mid East has got a lot more problerms as well […]
label besi
[…]The details mentioned inside the post are some of the ideal accessible […]