UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 459329  
Subject: Re: Countdown to the next financial bomb Date: 10/7/2012 2:14 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 41
1. First, that women on Wall Street have no power is irrelevant. I trust the studies which show that men (as a group) overestimate their ability to judge risk, and that women (as a group) swagger less, but so what? What gets you to the top in that field is making outsize bets and being right. If/when women get to a position of power, they are likely to be not reflective of the meme, and will be those who also take outsized risks and thereby have outsized success. For a while.

It's the culture of the street, not the predilection of one sex or another, that puts so much risk at risk.

2. There will be more failures, and they may be catastrophic. How catastrophic is the question. The disaster at JPM didn't bring down the entire global system, nor did the one at MF Global. It is only those that happen at a particular place and time, with such internal weakness and interconnectedness to others, and using such vast leverage that threatens me.

So some of JPM partners, managers, and stock owners got hammered? Too bad. So MF Global has 1,000 lawsuits? Oh well. I only care when the damage reaches other shores. (By the way, notice how all those screaming about "moral hazard" a while back don't seem to notice that firms are still going upside down and no one is jumping up to help them?

3. You are right; banks will not stop doing these things until prohibited by regulation. We learned that 80 years ago, but managed to unlearn it thanks to various "respected" think tanks.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (13) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

The Saddest Place on iPhone Day
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement