They will say that more regulation is needed to prevent situations like JPMorgan's latest loss.
As always, they are wrong. The lesson is: Don't bank with huge behemoth-type organizations. Bank locally if at all possible.
Dave Ramsey frequently drives this point home. He says that when stupid and greedy get together, nothing good can come of it. If individuals exercise wise stewardship over their money, the sprawling mega-banks won't have any business and they won't be so big and fancy anymore. Take your money to those who clearly embody maturity and moral restraint.
In other words, take your freedom seriously
UPDATE: Kevin Williamson at NRO reminds us that risk is inherent in economic activity - activity that is undertaken freely, that is. That's why government-run economies invariably stagnate.
What kind of regulation could have prevented such a loss? Answer: none that wouldn't have diminished freedom.
You dont seem to understand that these banks and insurance companies who gamble with the peoples money they are entrusted with almost did and likely will eventually bring down the world economy. But you choose to blame what you call sheep, although certainly part of the problem (and certainly not me), the world economy is run by wolves. Do we really need these fat cats? Are they really human beings we should emulate?
ReplyDeleteCan we expect the bloggie to gloat when Too Big to Trust gets downgraded like he does when our country's credit rating takes a hit? So let's hear from your investors, you know, the ones who manipulate the invisible hand.
ReplyDeletehttp://www.reuters.com/article/2012/05/11/markets-money-idUSL1E8GBQX320120511
JPMorgan's derivatives loss occurred as investors are fretting once again about contagion on the global banking system from the debt crisis plaguing the euro zone, they said.
Some analysts said the loss increased the chances that Moody's Investors Service could impose a steep downgrade of the credit ratings of JPMorgan, the biggest U.S. bank by assets.
There are few details at this time on how JPMorgan's bets soured.
"It validates Moody's review on these global financial institutions," said Lance Pan, director of research and strategy at Capital Advisors Group in Newton, Massachusetts. He added that part of "the rationale is that their books are 'black boxes.'"
The "world economy" is not "run" by anybody. The "economy" on any scale is the sum total of choices being made by millions of individuals.
ReplyDeleteAnd what is your point about the JPMorgan downgrade likelihood? It seems like a logical development to me.
Of course it is a logical development. The point is that you will likely. Not gloat about it like you do when your own country is downgraded. That's all. There is still sonme rough financial beasts slouching towards Wall Street. The invisible hand is a stacked deck.
ReplyDeleteI fear this not a lesson (which was learned 4 yrs ago) but another turn of the unfriendly card from that stacked deck. Stay tuned. There's an elephant in the room...
ReplyDeleteYou simply don't understand the primacy of your own freedom.
ReplyDeleteYour choice of the term "gloat" is entirely misplaced with regard to our nation as a whole having been downgraded. Rather, I consider it pathetic, tragic. It is a result of the Cloward-Piven deficit spending strategy of this current freedom-hating regime.