It’s
inevitable: Now that the JP Morgan Chase bank has announced a loss
that the media and the politicians have made into a giant fiasco.
It amounts to a tiny amount of the sums at risk, and it's amanageable capital loss.The public will be appeased by some firings. And you can be certain there will be calls for more government “ regulation.” Even though the so-called bureaucratic Volcker Rule cannot be put in writing as yet because no one knows exactly how to logically produce a viable standard.
Fact: J P Morgan Chase already had its own substantial staff of knowledgeable regulators behind the hedgers and traders who were always under at-risk scrutiny. Economic models go astray.
Government regulators are not known to be smarter or as efficient, for that matter. But they wield the whips of the politicians who are always right. Or at least they are as long as voters believe what the politicos are telling them. (See the Earl J. Weinreb NewsHole® comments.)
It amounts to a tiny amount of the sums at risk, and it's amanageable capital loss.The public will be appeased by some firings. And you can be certain there will be calls for more government “ regulation.” Even though the so-called bureaucratic Volcker Rule cannot be put in writing as yet because no one knows exactly how to logically produce a viable standard.
Fact: J P Morgan Chase already had its own substantial staff of knowledgeable regulators behind the hedgers and traders who were always under at-risk scrutiny. Economic models go astray.
Government regulators are not known to be smarter or as efficient, for that matter. But they wield the whips of the politicians who are always right. Or at least they are as long as voters believe what the politicos are telling them. (See the Earl J. Weinreb NewsHole® comments.)
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