TBTF & Shadow Banking – Krugman’s Perspective

Posted April 2, 2010 by cardinalram
Categories: Money & Finance

Tags: , , , , ,

Paul Krugman’s column today does a good 30,000ft overview of the issues we face in reforming the Financial System.

“So why not update traditional regulation to encompass the shadow banks? We already have an implicit form of deposit insurance: It’s clear that creditors of shadow banks will be bailed out in time of crisis. What we need now are two things: (a) regulators need the authority to seize failing shadow banks, the way the Federal Deposit Insurance Corporation already has the authority to seize failing conventional banks, and (b) there have to be prudential limits on shadow banks, above all limits on their leverage.”

While I’m not sure I agree with his thought that “too big to fail” (TBTF) is not as important as “shadow banking”, his point about needing to expand regulation to cover non-traditional banks is well worth considering….


Intelligent TV?

Posted April 2, 2010 by cardinalram
Categories: General Stuff

Tags: , , ,

Want to watch a TV news show that is thoughtful, insightful, and filled with intelligent conversation about issues of the day, year, and life? Try “Bill Moyers Journal” on PBS (9pm on Friday nights in most areas), but hurry! It is his last season. 😦

…been meaning to do this….

Posted April 2, 2010 by cardinalram
Categories: About...

I’ve been meaning to start a blog for sometime.   Finally got around to it today, mainly because I needed to set my wife up for one.

As with most blogs, this one will be a collection of random musings, rantings, viewpoints, and (sometimes) cool links to cool spots on the web.

Constructive comments welcome, even opposing opinions, if well reasoned and respectfully framed.  Flames will be put out (it’s my space, after all) and repeat offenders banished.

Welcome to my thoughts.