Bear Stearns Anniversary

March 15, 2010

Implications

a) Leverage kills

b) If it quacks, it is a duck

c) Market efficiency

d) Big banks are like nuclear power stations

e) Statistical models are like bikinis: what they reveal is suggestive, but what they conceal is vital

f) Bagehot and Keynes were both right

g) Rent-seeking is not wealth creation

h) Much of the capital they put at risk belongs to others

John Cassidy is a staff writer at The New Yorker and the author of ‘How Markets Fail’
http://www.ft.com/cms/s/0/b8b003ba-2f87-11df-9153-00144feabdc0.html

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: