<In the real world, preventinve action occurs all the time. After the financial crisis of the late 1980's higher reserve & liquidity standards for banks were established world wide, with strongly urged voluntary compliance. Value at Risk, VAR, was established as a standard methodology for assesing risk. VAR has lots of problems, but iot is a big improvement over the uneven practices before.>
I think he believes that this made things worse not better longer term [although it was an imediate benefit... ultimately I also believe it lead to MORE lending].
<In their Doom scenarios, bad events will happen in hte future AND NO ONE will do anything to stop it , or mitigate it, or recover. No one from government, the think tanks, bausiness, academia or the media will be even AWARE of the impending doom, and no effort made to avoid it.>
You mean a hyperflation instead of deflation?? I think that's why so many like gold here. Look what the government is ALREADY doing. If things spiral down from here they'll start sending out cash in the mail.
<This doesn't mean the world is getting more perfect, but there is some (not total) learning occuring, and some preventive actions being taken.>
What besides VAR would constitute 'more learning'???
DAK |
