The Feds Can’t Protect You

From the article:

“In studying how to respond to the recent crisis and create a more stable system, central bankers, international officials and others have been focusing on a concept known as “systemic risk.” That’s the type of falling-domino problem that allowed mortgage defaults in the United States to lock up the global financial system because of the complex connections among banks, investment companies, insurers and other firms around the world.”

“Studying?” Nice! It continues:

“Still, some central bankers and regulators are devising ways to try to control systemic risk, and one of the things they are focusing on is its connection to fast run-ups in the prices of real estate or other investments, or a quick expansion of credit and lending.”

Ridiculous. Not going to happen. This is happy talk for those too stupid to know upside or down. Why will this never happen? Regulators can’t stop people from seeking easy riches.

---
You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.

3 thoughts on “The Feds Can’t Protect You

  1. “central bankers, international officials and others have been focusing”…who? which ones?

    “some central bankers and regulators are devising”…who? which ones?

    Every article these days sound like the old Russian state-owned communist paper… “Authorities say” or “sources say”.

    When an individual can’t remember the source, the news becomes more credible in an individual’s mediocre mind. It’s a psychological trick.

  2. All the Feds have to do is stimulate with $1T more dollars while not raising the deficit…good luck

  3. There’s nothing to “study.”
    Paper money “multiplies” via the intent of fractional (fictional) reserve banking.
    Whoopee! More money to throw at assets…
    Central banks, presumably following Keynes, print still more – based on Lord K.’s clever nonsense.
    More whoopee…
    Political authorities, grateful for more “money” to promise voters, also gin up accounting “rules,” allowing their central banks + political donors, to build houses of cards “off-book.”
    May as well join the rush to Mike’s tulips, MBS’s, or whatever.
    ‘Cuz we just know all those central bank geniuses will save us.

Comments are closed.