On Mon, Apr 7, 2008 at 7:26 PM, Sandwichman <[EMAIL PROTECTED]> wrote:
> Big Al?
>

Hey how did you know? Did you cheat and look at the link??

Seriously though here's Easy Al at his infuriating best: (is there a
special level in the Inferno for this level of intellectual
dishonesty?)
------------------------------------------snip
Bank loan officers, in my experience, know far more about the risks
and workings of their counterparties than do bank regulators.
Regulators, to be effective, have to be forward-looking to anticipate
the next financial malfunction. This has not proved feasible.
Regulators confronting real-time uncertainty have rarely, if ever,
been able to achieve the level of future clarity required to act
pre-emptively. Most regulatory activity focuses on activities that
precipitated previous crises.

Aside from far greater efforts to ferret out fraud (a long-time
concern of mine), would a material tightening of regulation improve
financial performance? I doubt it. The problem is not the lack of
regulation but unrealistic expectations about what regulators are able
to prevent.




-raghu.


>  On 4/7/08, raghu <[EMAIL PROTECTED]> wrote:
>  > I don't know about blameless but this guy really is shameless..
>  >
>  >  http://www.ft.com/cms/s/0/81c05200-03f2-11dd-b28b-000077b07658.html
>  >  -------------------------------------snip
>  >  Martin Wolf argues in the FT that central banks "can surely lean
>  >  against the wind" even if they cannot eliminate bubbles. I know of no
>  >  instance in which such a policy has been successful. For reasons I
>  >  have outlined elsewhere (American Economic Association, January 2004),
>  >  I doubt that it is possible. If it turns out to be feasible, I would
>  >  become a strong supporter of "leaning against the wind".
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