Saturday, February 21, 2009

Thursday, February 19, 2009

Laissez-Faire? Ha!

The regulators ordered minimum capital requirements for banks based on the regulator’s very limited knowledge of about what risk is and thereafter effectively ordered the banks and markets to follow the opinions of the regulators favorite risk sentries the credit rating agencies. The banks and the investors obeyed and entered the swamplands of badly awarded mortgages to the subprime sector.

And they now dare to call that Laissez-Faire? They haven’t the faintest clue of what they are talking about.