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 handful of unrelated information, nevertheless definitely worth taking a appear, whoa did 1 study about Mid East has got additional problerms also […]
[…]very couple of internet websites that come about to become detailed beneath, from our point of view are undoubtedly effectively worth checking out[…]
[…]we like to honor a lot of other world wide web internet sites on the net, even though they arent linked to us, by linking to them. Underneath are some webpages really worth checking out[…]
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.
look here
[…]Here are some of the web-sites we advise for our visitors[…]
this website
[…]just beneath, are many entirely not connected sites to ours, having said that, they may be surely really worth going over[…]
sex toy review
[…]although sites we backlink to beneath are considerably not connected to ours, we feel they may be actually worth a go via, so have a look[…]
lgbt
[…]Every as soon as inside a although we select blogs that we read. Listed below would be the most recent web-sites that we select […]
magic wand attachment review
[…]Wonderful story, reckoned we could combine a handful of unrelated information, nevertheless definitely worth taking a appear, whoa did 1 study about Mid East has got additional problerms also […]
adam and eve sex toy
[…]that could be the end of this write-up. Here youll come across some sites that we assume youll enjoy, just click the links over[…]
official statement
[…]very couple of websites that happen to be in depth below, from our point of view are undoubtedly very well really worth checking out[…]
sex toys review
[…]please visit the web-sites we comply with, which includes this 1, as it represents our picks from the web[…]
read review
[…]check beneath, are some completely unrelated websites to ours, having said that, they’re most trustworthy sources that we use[…]
Homepage
[…]very couple of internet websites that come about to become detailed beneath, from our point of view are undoubtedly effectively worth checking out[…]
porn
[…]just beneath, are several totally not related web-sites to ours, having said that, they are certainly worth going over[…]
Sarah Rae Vargas
[…]Every once in a although we choose blogs that we study. Listed beneath would be the newest web-sites that we opt for […]
Vibrating
[…]we like to honor a lot of other world wide web internet sites on the net, even though they arent linked to us, by linking to them. Underneath are some webpages really worth checking out[…]
visit the site
[…]here are some links to web sites that we link to since we assume they are worth visiting[…]
Vibrating Cock Ring
[…]always a big fan of linking to bloggers that I really like but do not get a good deal of link adore from[…]