Friday, November 30, 2012

Japan Poses Biggest Global Risk: Expert

Robert Engle, 2003 Nobel Laureate in Economics, discusses why Japan poses the biggest systemic risk to the global economy.

1 comment:

  1. Those who sold the bubble should have
    cleared it years ago.

    The policy has been one of hand it over
    and free massive reserves at the expense
    of all savers though most saliently
    retirees and again those who sold the
    bubble and got their large proceeds thereby.

    The negative returns have been the arm
    twisting of that group.

    The U.S. needs risk takers, the mortgagors
    were somewhat risk suckers as well (the
    brokers were obviously told to just lend
    to anyone, pretty much, as the paper was
    getting sold.)

    Those mortgagors should have a non-recourse
    regimen.


    Both WSJ Free Pass article per last awareness on my part
    (with good effort:)

    http://online.wsj.com/article/SB122265260912184329.html

    http://online.wsj.com/article/SB123336541474235541.html



    Instead of backstopping the TBTF bank loans
    and liabilities those banks should have
    seen their holding companies suck up their
    own losses.

    We've been benchmarked to 0% instead.

    Funny how this interview discussed Japan.

    Free reserves and blame gaming China amounts
    to turning the U.S. into Japan and Iceland at
    each country's worst moment: MBS's kited
    through Iceland creating the carry trade
    that siphoned from Japan's recovery.

    TBTF is synonymous with oligopoly.
    ObamaCare replaces in-your-face exclusions
    and cherry picking with an exquisite,
    exacting, blanket-universal static oligopoly,
    complete with population milking profit
    stipulations but devoid of clinical rationalization
    for the greater part, except for in the high
    risk exchanges, which I call "outskirts of Medicare,"
    which is national health insurance for customers
    the insurers don't want but for which they get
    paid to take some back (I'm fair and give
    credit where it's due: where that's on
    capitation they HAVE yielded welcome efficiencies,
    though THEY'RE now the source of pull-the-
    plus on grandma related papers that are less
    welcome.)

    Cable is a "natural" monopoly, but theirs
    should be ratched back to the stipulated
    profit-type monopoly that ObamaCare creates.

    Of course, transportation has been a modal
    monopoly.

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