Tuesday, October 28, 2008

Seven Deadly Sins of the Meltdown

4 comments:

Anonymous said...

Fantastic!

Jason said...

Interesting, though what should the regulators do? In a market economy, the banking sector should provide financial services based on risk analysis. If anything, regulation provides incentives for bankers to lend to risky lenders. Therefore I don't understand the cartoon. I like the rest of it, though.

Philip said...

I agree with you, Jason. The problem is not too little regulation, it's too much bad regulation, a la Barney Frank and Chris Dodd.

Stephen said...

There are a couple of areas where good regulation may have made the crisis much less severe:

1. Making the over $50 trillion credit default swap market more transparent.
2. Reining in the ridiculously high leverage employed by many financial institutions and hedge funds.