tag:blogger.com,1999:blog-582368152716771238.post8094521748996205703..comments2024-03-28T14:41:03.793-05:00Comments on The Grumpy Economist: Financial ChoiceJohn H. Cochranehttp://www.blogger.com/profile/04842601651429471525noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-582368152716771238.post-6031063166268041002016-07-26T15:05:34.201-05:002016-07-26T15:05:34.201-05:00John,
I am less sanguine on the penalty enhanceme...John,<br /><br />I am less sanguine on the penalty enhancements, see my Forbes piece here: http://www.forbes.com/sites/realspin/2016/07/19/financial-choice-act-goes-wrong/#685f22cc6f90.<br /><br />J.W.J.W. Verretnoreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-60423460785447166312016-06-21T23:59:34.283-05:002016-06-21T23:59:34.283-05:00Confirmation:
http://fivethirtyeight.com/features...Confirmation:<br /><br />http://fivethirtyeight.com/features/the-gops-house-majority-is-safe-right/<br /><br />"...Democratic voters have never been more concentrated in big urban areas than they are now. In 2012, President Obama won by 126 electoral votes while carrying just 22 percent of America’s counties — even fewer than losing Democratic nominee Michael Dukakis’s 26 percent in 1988. That means Democrats are wasting more votes than ever in safe congressional districts they already hold..."FRestlyhttps://www.blogger.com/profile/09440916887619001941noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-70615055465119322692016-06-17T16:24:10.724-05:002016-06-17T16:24:10.724-05:00Deutsche Bank has 20 billion market value of equit...Deutsche Bank has 20 billion market value of equity and some 2 trillion total assets - they'd love to get to your ridiculous 10% equity capital. Recently they've taken to gallows humor, picturing themselves in Dante's lowest pit of hell alongside others charging interest Dante never thought of negative rates, mind you, maybe that's the way to salvation.Ecoute Sauvagehttps://www.blogger.com/profile/16322296385474846302noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-4778855493513625602016-06-17T16:19:06.434-05:002016-06-17T16:19:06.434-05:00Prof. Cochrane - nobody said it's impossible t...Prof. Cochrane - nobody said it's impossible to raise equity capital, only that its cost is very high relative to debt. You recall of course the part of MM on higher equity ratios making both equity and debt less risky and therefore less expensive? <br /><br />It may not be risk of default that is increasing, but rather the price of risk itself (a calculation similar to the excessive bond premium calculations. Truly I hope you'll address this point. Thank you.Ecoute Sauvagehttps://www.blogger.com/profile/16322296385474846302noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-90427925789450654042016-06-17T10:04:23.205-05:002016-06-17T10:04:23.205-05:00This project seems to be a self indulgent distract...This project seems to be a self indulgent distraction for Congress. They should get on with finalizing a budget and putting forward a formal plan for ObamaCare before starting on these new projects. Absalonhttps://www.blogger.com/profile/09131268683451462949noreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-36983155924553215592016-06-16T16:03:41.050-05:002016-06-16T16:03:41.050-05:001) 10% capital is ridiculous. Most banks have more...1) 10% capital is ridiculous. Most banks have more than that today. Getting rid of all regulations for that is a free lunch for banks.<br /><br />2) And surprise, surprise - he is being financed by the banks!<br />https://www.opensecrets.org/politicians/industries.php?cycle=2016&cid=N00024922&type=I&newmem=N<br /><br />3) What exactly is the evidence that all these financial regulations are so bad for the economy?<br /><br />4) " notice and comment " period on the stress tests -> great, let's create a two-year delay. With financial innovation, it's a huge problem that all new guidances take forever to be approved.<br /><br />5) One key reason financial regulation doesn't work well in the US is fragmentation. Too many agencies, none of which has clear responsibility and powers. Surprise - not a word about that.<br /><br />6) Overall the bill seems just like a free-for-all for banks. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-582368152716771238.post-20872245613809139502016-06-15T22:49:01.478-05:002016-06-15T22:49:01.478-05:00John,
"We need a steady clean-up of the lega...John,<br /><br />"We need a steady clean-up of the legal and regulatory mess of the last few decades. For that project, it may be better for policy leadership to come from Congress, and by careful and patient drafting of actual legislation."<br /><br />Okay, put the private banking system and the Federal Reserve out of business by going back to fiat currency issued by the Treasury and have Congress just set the quantity of dollars in circulation.<br /><br />No need to worry about bank debt / equity ratios, capital requirements, and all that nonsense. Suddenly, we can now trust Congress to do the right thing. Except the polls say otherwise:<br /><br />http://www.gallup.com/poll/1600/congress-public.aspx<br /><br />June 2016 - U. S. Congress - 80% disapproval rating<br /><br />One final comment from above:<br /><br />"We are still living in the shadows of Franklin Roosevelt's 100 days, and an increasingly imperial presidency."<br /><br />The only reason Roosevelt was able to pass so much legislation was that the Democrats had a significant majority in Congress. Don't expect that situation again.<br />FRestlyhttps://www.blogger.com/profile/09440916887619001941noreply@blogger.com