Tuesday, March 10, 2009

This Is Not Rocket Surgery

No one wants to bite the bullet or take responsibility for the financial disaster. The business people that paid the lobbyists to push for the changes in the rules and laws that protected all of us from a financial disaster are not going to raise their hand and admit their mistakes anymore than the politicians who took their money and voted to change the laws that worked since the 1930s and 1940s. Now Bernake thinks we need a holistic system of regulation, but no where do I see him or anyone else addressing the issue of the credit rating agencies (CRAs). This is something to watch for me because I could clean up this mess in a month or two if I had President Obama’s ear. Where is Paul Volcker? I can not believe Paul Volcker does not know the formula to fixing the flow of credit. Larry Summers could handle this too, I think. There must be some strong politics behind the lack of movement. I can not for the life of me believe that these two guys, Volcker and Summers, do not know how to fix this thing. This is not rocket surgery.

Stay tuned.


winslow said...

A scientific study was recently released by a psychologist that has researched the following problem for 15 years.......Are leaders really forward thinkers?
In this recent study, 15 Yale PhD grad students were pitted against a mouse in decision making. The Yale grad students routinely over-thought each process. The mouse made correct decisions 67% of the time vs 57-62% for educated minds.

The psychologist said this is comparable with other studies he has conducted over the years. We tend to relie and believe the "experts", but they are not necessarily correct in their assumptions.

The study goes on to conclude that the economy is too complex for mathematical models. Random events cannot be factored into an equation because then, the equation is faulty. The analogy goes further, explaining why we can't listen to "experts" about what will happen to the economy in the future.

Perhaps, you are the mouse.... and you see the things the "experts" miss; even though it is obvious to us mice.

moneythoughts said...

Well, I do like cheese and peanut butter.

I buy the holistic approach to banking, securities and insurance regulation, let us hope they don't leave any important pieces out.

Butch said...

Watch out for that Mouse Trap. It has been know to get even the wisest of mice before.

Maybe, just maybe, there is someone else driving this boat. The puppets are there in the publics eye just to keep the common man confused and in his place. If everything is orchestrated well enough stocks will be sooooooo low and inexpensive that some will make new fortunes.

Right now it isn't the mice that are in control, it is the chickens and you know what they are running around like.