May 18, 2009 Small, Dull, Solvent You didn't have to be a small community bank to steer clear of the helter-skelter investments favored by the likes of Bank of America and AIG. But apparently it helped. New York Times reporter David Segal writes that spending time with solvent bankers in places like Indiana was like stepping into an “alternate universe,” a place “where everything sounds a little strange because it makes perfect sense.” Weird that it's strange, eh? Sensible should be normal. Turns out, the secret is to be boring. Clay Ewing, a banker in Jasper, says, “If banking gets exciting, there is something wrong with it.” So, no maniacal juggling of hyper-complicated subprime debt instruments just for the thrill of it. Boring bankers also tell Segal: “If you don't understand the risk you're taking, don't take it.” Also: “We want to be around for decades, so we're not focused on the next quarter.” Today, banks that abided by such common sense are solvent. And declining government bailout money. Profligate bankers propelled by visions of infinite if inexplicable returns were not the only culprits in the housing bust. The Federal Reserve stoked the buildup of demented debt. As did many politicians. But bankers who made bad decisions also deserve blame for surging blindly ahead. They could have done otherwise. They could have been, well, boring. This is Common Sense. I'm Paul Jacob. Paul Jacob is President of Citizens in Charge and the Citizens in Charge Foundation, which sponsors both Common Sense and Paul's weekly Townhall Column. The opinions expressed in Common Sense are Paul Jacob's and do not necessarily reflect the opinions of Citizens in Charge or the Citizens in Charge Foundation. --~--~---------~--~----~------------~-------~--~----~ This is a Free Speech forum. The owner of this list assumes no responsibility for the intellectual or emotional maturity of its members. If you do not like what is being said here, filter it to trash, ignore it or leave. If you leave, learn how to do this for yourself. If you do not, you will be here forever. -~----------~----~----~----~------~----~------~--~---