
Paul Volcker: How to Reform Our Financial System - robg
http://www.nytimes.com/2010/01/31/opinion/31volcker.html?hp=&pagewanted=all
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kiba
I think an economic hip-hop video is relevant here:

"Fear the Boom and Bust" - a Hayek vs. Keynes Rap Anthem

<http://www.youtube.com/watch?v=d0nERTFo-Sk>

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jackfoxy
I scanned the article, found no bullet points and no sentence that grabbed my
attention enough to read.

As much as I normally respect Volcker, this paper gets an "F" as a "How To".

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BearOfNH
My take: if it's "too big to fail" they need to create a "living will" to
direct how to liquidate the company when it does fail. This avoids a sudden,
unexpected shock to the system and any resulting dislocations.

In my mind it's debatable that something like that can be done practically, or
that a "living will" would really work in practice. I am reminded of the "duck
and cover" drills from my youth. Still, something needs to be done.

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Towle_
Kill the Fed.

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Towle_
Fed pushes interest rates far below natural levels --> flood of easy credit
into the hands of those who, regardless of work ethic, merit as human beings,
etc., just can't afford it --> loans don't get paid back --> banks don't have
the money they should --> credit flow halts entirely --> everything goes to
shit

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Towle_
Whatever. Democratic fallacy realized. Moving on with my life.

