[FoRK] Scary study on how lack of IPOs is harming US economy

Ken Ganshirt @ Yahoo ken_ganshirt at yahoo.ca
Tue Nov 10 12:48:13 PST 2009


--- On Tue, 11/10/09, Jeff Bone <jbone at place.org> wrote:

> 
> Re: Glass-Steagal and Ken's 4 points from Wikipedia:
> 
> (1) GS is shooting an ant with a cannon with respect to
> this point
> (2) Ditto, plus usual boogeyman populist BS about evil
> financial institutions
> (3) Ditto, even moreso
> (4) Fine to a point, though vacuous and subtly
> contradictory of (2,3)
> 
> Look, it all depends on definitions and desired
> outcomes.  There are tradeoffs all around.  The
> bottom line is that in a bits-based economy, there is *no*
> durable, risk-free store of value.  None is possible,
> period.
>

I'm not claiming anything is risk-free. I'm simply pointing out that, post-meltdown, Canada's banking system is rated as one of the strongest in the world. One of the reasons pointed to as having a large role in its resilience is the regulatory environment. One fundamental aspect of that is the continued separation of functions. Another is that we never completely abandoned requirement for a lock-in of capital assets equal to some reasonable percentage of outstanding loans.

Are you saying that the separation is, in fact, useless and there is some other significant factor in the Canadian banking system's resilience that has been completely overlooked? Or that it was complete serendipity?

Hey, I know it's a complex issue but some things seem to have had more positive or negative impact than others when the excrement hit the fan. When the defaults started, banks went down like dominos in the UK and US, or would have without the repective governments buying them.

We did not have the same problems here. Separation of those functions is pointed to as perhaps the most significant factor. Yes, we had problems but where they were similar they were of a different magnitude. 

I'm particularly interested in your view because our financial systems are, otherwise, so intrinsically linked. hmmmm... terminology gets in the way.... Perhaps I should be saying our markets, financial and otherwise, are so intrinsically linked? Perhaps moreso than the rest of the world.

       ...ken...


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