From the article:

“In studying how to respond to the recent crisis and create a more stable system, central bankers, international officials and others have been focusing on a concept known as “systemic risk.” That’s the type of falling-domino problem that allowed mortgage defaults in the United States to lock up the global financial system because of the complex connections among banks, investment companies, insurers and other firms around the world.”

“Studying?” Nice! It continues:

“Still, some central bankers and regulators are devising ways to try to control systemic risk, and one of the things they are focusing on is its connection to fast run-ups in the prices of real estate or other investments, or a quick expansion of credit and lending.”

Ridiculous. Not going to happen. This is happy talk for those too stupid to know upside or down. Why will this never happen? Regulators can’t stop people from seeking easy riches.

I generally like Fareed Zakaria, but check this out:

Regardless of Buffett’s bailouts, etc. — doesn’t everyone think it is a little odd that anyone would question his ‘money’ acumen? He did after all make a few billion last I checked. And even if he is wearing a beat up tie, telling him to go spend on a new one is the EXACT reason in many ways why we are in the mess we are in!

An excerpt from here:

“…in contrast to astrology, one must accept the fact that success is not due to a fortuitous concourse of stars at our birth, but due to a steady trail of sparks from the grindstones of hard work, determination, good planning, and perseverance. When it comes to the future, there are three kinds of people: those who let it happen, those who make it happen, and those who wonder what happened.”

That link and quotation was posted in response to this comment earlier today on my blog:

“The people William Eckhardt is talking about have something special in their personalities. They are .001% of the population…The turtles were a carefully selected group of individuals who were acting on Richard Dennis’ niche.”

This individual has not read my text on the Turtles. It’s amazing how convoluted (and misunderstood) the Turtle story continues to be in the minds of some. Bottom line, this poster is the type who believes in astrology. This is the type who let’s it (life) happen to him or her. More from that link about sound decision-making:

“A decision usually involves three steps:

1. A recognition of a need: A dissatisfaction within oneself–a void or need;
2. A decision to change–to fill the void or need;
3. A conscious dedication to implement the decision.

So aside from that, we see that making the correct decisions is not only what we want to do, but includes what we have to do. The fool who repeats again and again: “I am bound, I am bound,” remains in bondage.”

Everyone gets what they want!

First posted this exact post…about 5 years ago. Time to post again:

A great MP3 from the movie Patton and another great MP3 from the movie Cool Hand Luke (with help from Guns N’ Roses).

Seen on Ritholtz.com.

Just saw this headline and article from Associated Press:

New financial rules might not prevent next crisis. Sweeping financial overhaul will change many rules, but loopholes could allow another crisis.

When you read that you are left with one of two choices:

1. The author(s) have no idea what they are talking about.
2. The author(s) are purposefully not telling the truth.

Bubbles (read: “crisis”) are a part of human condition. They will never be eliminated. Government rules will NEVER keep human beings from building financial bubbles. Why is this such a simple concept to outline, but seemingly beyond the comprehension of all journalists?