Tuesday, November 03, 2009

Doomed To Fail Again!

“History cannot be allowed to repeat itself" so said Obama.

Here's an interesting article on the Edge Financial Daily.
Over regulation and other ‘BS’

  • “History cannot be allowed to repeat itself,” he added. I have some bad news for the American President and for anyone else who thinks that things will be different this time. If you take a close look, history is already starting to repeat itself.

    Some commercial banks — including some that required government support to be able just to lend another day — are now acting as if the crisis never happened.

    Some investment bankers — including some who should have been forever humbled by their actions — are once again lining up for big bonuses.

    Some investment funds — which lost considerable sums on behalf of investors — are once again loading up on some of the very same high-risk assets that caused them so much pain.

    Most of these examples are in the West, granted. However, if we all take the time to look a little closer around Asia there is plenty of evidence of overly optimistic behaviour near here.

    The rapid increases in stock markets in China and India is one example. Rising property prices in Hong Kong are another. The second point I want to make is simply this. History tends to repeat itself. Repeatedly.

    As a result, going forward, we can all expect to see more financial crises, with an emphasis on the plural. More economic bubbles forming, which policymakers and politicians will miss or mishandle. And more examples of banks and bankers straying once again from the basics of what constitutes good, prudent banking...

Over at Jesse's: Ten Things Not to Like About the US Government Policy Actions Known as "The Bailouts"

  • Wall Street is bailed out; Main Street is not. Efforts to subsidize the incomes and balance sheets of failing firms have been massive and were implemented with minimal debate, requirements, or oversight; efforts to shore up taxpayer incomes and balance sheets have been comparatively minimal, subject to extensive debate and tinkering, highly selective, and incomplete.