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 a few unrelated data, nevertheless really worth taking a look, whoa did a single master about Mid East has got far more problerms too […]
[…]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless seriously really worth taking a appear, whoa did a single find out about Mid East has got far more problerms also […]
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.
female vibrator
[…]please stop by the sites we comply with, like this 1, as it represents our picks from the web[…]
Healthy food easy to prepare
[…]Here are a number of the web pages we advise for our visitors[…]
home cleaning Melbourne
[…]usually posts some really exciting stuff like this. If you are new to this site[…]
woodinville exterminators
[…]Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did a single master about Mid East has got far more problerms too […]
gay sex toys
[…]Every as soon as inside a though we opt for blogs that we study. Listed beneath would be the most up-to-date websites that we choose […]
gay toys
[…]usually posts some pretty exciting stuff like this. If you are new to this site[…]
butt plug
[…]below youll come across the link to some web-sites that we assume you should visit[…]
Sex Toys for Women
[…]very few web sites that come about to become comprehensive beneath, from our point of view are undoubtedly effectively really worth checking out[…]
Surprise Candles
[…]that could be the finish of this post. Here youll obtain some web sites that we assume you will appreciate, just click the hyperlinks over[…]
9 inch dildo
[…]very handful of internet sites that come about to become detailed below, from our point of view are undoubtedly nicely really worth checking out[…]
rabbit sex toy
[…]here are some hyperlinks to internet sites that we link to simply because we consider they’re really worth visiting[…]
bandiera Italia
[…]very handful of internet sites that take place to be in depth beneath, from our point of view are undoubtedly effectively worth checking out[…]
kala jadu
[…]Wonderful story, reckoned we could combine a number of unrelated information, nevertheless seriously really worth taking a appear, whoa did a single find out about Mid East has got far more problerms also […]
Get the latest news and information on sports and championship events
[…]check below, are some entirely unrelated web sites to ours, nonetheless, they are most trustworthy sources that we use[…]
interior design Singapore
[…]below youll uncover the link to some web pages that we assume you should visit[…]