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).
I completely adore your blog and discover a whole lot of your post’s to be specifically I’m looking for. Does one offer guest writers to create content accessible for you? I wouldn’t mind generating a publish or elaborating on a number of of the topics…
Do you have a spam problem on this blog I also am a blogger, and I was wanting to know your predicament we have designed some nice procedures and we are seeking to swap methods with other people, be confident to shoot me an e-mail if fascinated.
[…]we like to honor numerous other world-wide-web websites on the web, even though they arent linked to us, by linking to them. Under are some webpages worth checking out[…]
When I to begin with commented I clicked the “Notify me when new comments are added” checkbox and now every time a comment is included I get a few e-mail with the same comment. Is there any way you can remove me from that provider? Thank you!
Appreciating the time and energy you put into your weblog and thorough details you provide. It is excellent to appear throughout a website each when in a whilst that isn’t the same undesirable rehashed information. Superb go through! I’ve saved your we…
[…]although web sites we backlink to below are considerably not related to ours, we feel they’re essentially really worth a go by means of, so have a look[…]
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.
Subscribe & Reform
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.
تولید محتوا
I completely adore your blog and discover a whole lot of your post’s to be specifically I’m looking for. Does one offer guest writers to create content accessible for you? I wouldn’t mind generating a publish or elaborating on a number of of the topics…
طراحی سایت
Do you have a spam problem on this blog I also am a blogger, and I was wanting to know your predicament we have designed some nice procedures and we are seeking to swap methods with other people, be confident to shoot me an e-mail if fascinated.
cock ring
[…]please visit the internet sites we comply with, like this one, because it represents our picks in the web[…]
rianne s vibrator
[…]Here are a number of the web-sites we advocate for our visitors[…]
digital marketing app
[…]we like to honor numerous other world-wide-web websites on the web, even though they arent linked to us, by linking to them. Under are some webpages worth checking out[…]
2018 mercedes c63s amg armytrix valvetronic exhaust
[…]Sites of interest we have a link to[…]
خرید اپل ایدی
When I to begin with commented I clicked the “Notify me when new comments are added” checkbox and now every time a comment is included I get a few e-mail with the same comment. Is there any way you can remove me from that provider? Thank you!
hotels in singer island fl
[…]that may be the finish of this report. Here you will locate some web sites that we feel youll appreciate, just click the links over[…]
خرید اپل ایدی
Appreciating the time and energy you put into your weblog and thorough details you provide. It is excellent to appear throughout a website each when in a whilst that isn’t the same undesirable rehashed information. Superb go through! I’ve saved your we…
rechargeable thrusting rabbit toy
[…]below youll obtain the link to some websites that we consider you should visit[…]
wild orchid evolved
[…]Sites of interest we’ve a link to[…]
card for amazon payment
[…]although web sites we backlink to below are considerably not related to ours, we feel they’re essentially really worth a go by means of, so have a look[…]
best sex toys
[…]please check out the web sites we stick to, which includes this one, as it represents our picks from the web[…]
adult toys
[…]The information and facts mentioned in the write-up are some of the very best accessible […]
free adam and eve movies online
[…]Sites of interest we’ve a link to[…]