Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (29579)	9/17/2008 8:56:20 PM
From: DuckTapeSunroof	Respond to of 71588

Well... they could always TAKE THE CHANCE... and see what happens. But, if it goes bad it might not be possible to put Humpty Dumpty back together again. (Anyway --- I believe that all cases have presented very different risk/reward profiles so far. Only AIG/Freddie/Fannie, in my opinion, ran a clear risk of precipitating global disaster.) Message 24962044 But... opinions will vary. My main point is that these unregulated markets and institutions that 'fall between the regulatory cracks' (for example: the Fed has no statutory authority over insurance companies, etc.), and the wild, outrageous leverage they were running (50, 60, up to 70 to 1 at Freddie...) were 'Titanics' just cruising around looking for the inevitable iceberg to puncture them. But --- being large enough to pose sufficient systemic risk to bring the roof down on the entire world's financial system, and yet being improperly/insufficiently/inadequately and inefficiently regulated? Well... that failure is a stupidity that should be laid right at the doorsteps of government --- it is a failure of government, a failure to have adequate or effective policing. (The same principle can be extended to the field of Monopoly Law --- if an outfit is SO LARGE that it poses out-sized risks to the entire system, to the world or the nation --- then the problem becomes the world's or the nation's problem.... No one would like walking around with the Sword of Damocles hanging over their heads.... :-)