Author: SMITHI

‘They’re robbing us’: 12-year-old exposes banking flaws, video goes viral   [Copy link] 中文

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Post time 2012-6-4 18:24:29 |Display all floors
SMITHI Post time: 2012-6-4 15:55
Problem is deregulation of whole banking industry , nobody sane would leave banks to self regulate ...

Life is mostly froth and bubble, but two things stand like stone. Kindness in anothers trouble, and .courage in your own. Annon.

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Post time 2012-6-4 18:26:03 |Display all floors
warrigal Post time: 2012-6-4 18:24



thanks

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Post time 2012-6-4 18:48:41 |Display all floors
SMITHI Post time: 2012-6-4 18:26
thanks

no worries mate
Life is mostly froth and bubble, but two things stand like stone. Kindness in anothers trouble, and .courage in your own. Annon.

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Post time 2012-6-4 19:21:09 |Display all floors
are you comdian or jew?

Something is seriously wrong with you , why else would you lie about something that is common knowledge.


I'm an economist researching in that field and therefore it is my job to question "common knowledge" - especially if that "common knowledge" has its reason in a political process.

Please note that your perspective of matters is highly selective:
You consider a regulation from ten years ago as the main reason for today's problems without any scientific proof. Take off those normative glasses and use analytical thinking to understand the situation. Only sophisticated cybernetics, not politics, will be able to explain the system dynamics that led to the latest developments.

Be very careful to understand what is going on, in order to avoid being deceived by political propaganda that is very common in this field. Look at numbers, not at words, for words only reflect their author's own opinion.

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Post time 2012-6-4 19:24:44 |Display all floors
Everynowhere Post time: 2012-6-4 19:21
I'm an economist researching in that field and therefore it is my job to question "common knowledg ...
You consider a regulation from ten years ago as the main reason for today's problems without any scientific proof


well yes it take about ten years from start of deregulation( till final results on economy show up in this case wall street crash four years ago.

12 year old kid know that yet you cyber super economist with all kind of cyber super titles do not know that?
how come?

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Post time 2012-6-4 19:30:46 |Display all floors
unless you are paid not to know?

that would explain the mistery i guess.

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Post time 2012-6-4 22:55:56 |Display all floors
I think we're trying to solve two different problems.
While I'm criticising the fact that there could be a real estate bubble (as it was caused by overregulation), you criticise the fact that it could burst (because investors and banks could sell their assets when they wanted).
In the end, we shouldn't look at money - we should look at information and make sure that the financial system is regulated in a way that allows for information to flow as efficiently as possible. Only by that will we ever be able to prevent economic crises in the future. The cold war regulations did not support information flow, so abolishing them improved efficiency. The regulations of the real estate market and the lack of transparency in rating agencies, however, prevented information from flowing efficiently, leading to the real estate bubble that eventually burst.

If you have accidents on the roads, you also don't just ask cars to slow down to 30 Km/h on motorways, but rather ensure that traffic flows smoothly. Why not doing the same in finance?

The girl wants to abolish central bank independency and allow the government to straightly print money to pay debts. That would be a disaster, as this has so often in history caused hyperinflation and facilitated governments to virtually enslave their people. This policy was, just by the way, one of the main causes of WWII as it led to the hyperinflation in germany and thereby brought Hitler (and other extremists in other countries) to power, so I don't think we should go back to that.
The US FED broke that taboo by moderately buying US treasury bills (QE I and II) recently and the world's outcry was huge - especially China's. It took lots of diplomacy to rebuild trust in the US monetary system afterwards - should we really make that the rule?

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