Fed aid in financial crisis went beyond U.S. banks to industry, foreign firms

[Trajan]

Trajan

I agree. There is zero doubt in my mind that the government will bail out the banks if we have a repeat of the financial crisis, no matter who is in power. I also agree that this has infused massive moral hazard into the financial system, and we are setting up for some other calamity within the next decade. But I also believe the government was faced with a Hobson's Choice during the Financial Crisis, and it is easy to Monday morning QB long after the unbelievable pressure has subsided two years later.

I hear you. I understand it was, well no real choice, BUT as usual they didn't cure the disease, they cured the system, short term. Now I am not saying they alone could have cured the disease but they didn't do what they ostensibly set out to do, make the cure available i.e. getting the lending machine going, oh they rescued on Qtr. to Qtr. basis locked up bus.'s who had their ear based on their own formula yet? Manny's taco stand didn't get a chance, or Mitzi's diner or Bobs copy center, they again, failed to address another whole side of the issue. They supposedly did, but I don't see it...do you?

 

[william the wie]

LC the term Toro is avoiding is herding. If you have ever served a hitch you experienced herd formation. The idea is to train you to do something when your higher brain functions don't. Since the rat and reptile brains of even a genius are not that bright grossly oversimplified models are used to aid survival when everything goes to hell. General equilibrium is one such model. Despite the meltdown in 2008 and the collapse of the US onions future market in the 1950s usually General Equilibrium works enough better than competing memes to stick with it even though it doesn't really exist.

 

[loosecannon]

Delusion and apathy are deeply embedded in the human condition.

Yeah, well, sometimes the market selects for folks who embody those traits too.

 

[loosecannon]

LC the term Toro is avoiding is herding. If you have ever served a hitch you experienced herd formation. The idea is to train you to do something when your higher brain functions don't. Since the rat and reptile brains of even a genius are not that bright grossly oversimplified models are used to aid survival when everything goes to hell. General equilibrium is one such model. Despite the meltdown in 2008 and the collapse of the US onions future market in the 1950s usually General Equilibrium works enough better than competing memes to stick with it even though it doesn't really exist.

I hear you Willie, and Toro, and I actually am listening intently.

But I can't help but wonder if the culture in Wall Street circles doesn't select for people with delusion disorders (salesmen often do, as do politicians), perhaps serial liars, perhaps herd mentality as well, and raise those people to the top.

We trust these people to manage our global life support system.

I think there is something toxic in the culture in which these folks spend a career in incubation.