Comments on: Banking? Keep it simple stupid http://blogs.reuters.com/commentaries/2009/09/10/banking-keep-it-simple-stupid/ Now raising intellectual capital Sun, 19 May 2013 09:23:27 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: r a http://blogs.reuters.com/commentaries/2009/09/10/banking-keep-it-simple-stupid/comment-page-1/#comment-4250 r a Mon, 14 Sep 2009 13:59:40 +0000 http://blogs.reuters.com/commentaries/?p=3792#comment-4250 ABout time somebody mentioned that Frankensteinian sewer of corruption, the tax code. This monstrosity wastes billions, employs tens of thousands of highly-paid parasitical "workers" and needlessly complicates finance. While it is not always clear what the best path to reform is with regard to capital, risk management, systemic risk, etc the way forward on tax is very simple (well, but for the politics). Fixing tax will not solve all our problems, but it is a clear and attainable objective and would be a great place to start. ABout time somebody mentioned that Frankensteinian sewer of corruption, the tax code. This monstrosity wastes billions, employs tens of thousands of highly-paid parasitical “workers” and needlessly complicates finance. While it is not always clear what the best path to reform is with regard to capital, risk management, systemic risk, etc the way forward on tax is very simple (well, but for the politics). Fixing tax will not solve all our problems, but it is a clear and attainable objective and would be a great place to start.

]]> By: gd http://blogs.reuters.com/commentaries/2009/09/10/banking-keep-it-simple-stupid/comment-page-1/#comment-4183 gd Sun, 13 Sep 2009 12:45:06 +0000 http://blogs.reuters.com/commentaries/?p=3792#comment-4183 The US banking system is insolvent. IS THAT SIMPLE ENOUGH! To take a line from a truly aweful movie "The US people can't handle the truth" The US banking system is insolvent. IS THAT SIMPLE ENOUGH! To take a line from a truly aweful movie “The US people can’t handle the truth”

]]> By: Casper http://blogs.reuters.com/commentaries/2009/09/10/banking-keep-it-simple-stupid/comment-page-1/#comment-4029 Casper Fri, 11 Sep 2009 10:27:43 +0000 http://blogs.reuters.com/commentaries/?p=3792#comment-4029 Good one. It is simple stupid, we just don't get it. Good one.

It is simple stupid, we just don’t get it.

]]> By: Bradford C. Riendeau http://blogs.reuters.com/commentaries/2009/09/10/banking-keep-it-simple-stupid/comment-page-1/#comment-3966 Bradford C. Riendeau Thu, 10 Sep 2009 18:49:59 +0000 http://blogs.reuters.com/commentaries/?p=3792#comment-3966 Curiously, this sounds like what the regulations from the Great Depression forced upon banks and investment firms. The creation of bank holding companies and blending of the business of insurance with the business of investing with the business of banking is what you are talking about. Increasingly this blend is now including the business of energy. Risky trading in energy futures, manipulation of electrical supply and delivery, risky trading in housing and building loans, combined lead to a cumulative risk that is unfathomable. There is research on the ability of the human brain to handle data by the RAND Corporation. The name of the article is the "The Magic Number 7 plus or minus 2." It has been known for a long time that too much data makes for bad battlefield decisions and bad policy. The financial sector has ignored what the Army and the President know. If they are ignorant than the government must disabuse them of their prideful galloping toward a fence they cannot jump, or cannot decide whether to jump or go around. Curiously, this sounds like what the regulations from the Great Depression forced upon banks and investment firms. The creation of bank holding companies and blending of the business of insurance with the business of investing with the business of banking is what you are talking about. Increasingly this blend is now including the business of energy. Risky trading in energy futures, manipulation of electrical supply and delivery, risky trading in housing and building loans, combined lead to a cumulative risk that is unfathomable. There is research on the ability of the human brain to handle data by the RAND Corporation. The name of the article is the “The Magic Number 7 plus or minus 2.” It has been known for a long time that too much data makes for bad battlefield decisions and bad policy. The financial sector has ignored what the Army and the President know. If they are ignorant than the government must disabuse them of their prideful galloping toward a fence they cannot jump, or cannot decide whether to jump or go around.

]]> By: DanO http://blogs.reuters.com/commentaries/2009/09/10/banking-keep-it-simple-stupid/comment-page-1/#comment-3956 DanO Thu, 10 Sep 2009 17:56:34 +0000 http://blogs.reuters.com/commentaries/?p=3792#comment-3956 Amen to community banks. Credit unions are generally cool too. Accidents are not the same as wrecks and crashes. Banks can only be prone to crashes and wrecks. Accidents are beyond the operators control, therefore rare as hens teeth. Amen to community banks. Credit unions are generally cool too. Accidents are not the same as wrecks and crashes. Banks can only be prone to crashes and wrecks. Accidents are beyond the operators control, therefore rare as hens teeth.

]]> By: William Andrzeicik http://blogs.reuters.com/commentaries/2009/09/10/banking-keep-it-simple-stupid/comment-page-1/#comment-3954 William Andrzeicik Thu, 10 Sep 2009 17:47:06 +0000 http://blogs.reuters.com/commentaries/?p=3792#comment-3954 Too big to fail = too big to keep track of. Community banks have and continue to serve their customers and communities well. Too big to fail = too big to keep track of. Community banks have and continue to serve their customers and communities well.

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