tag:blogger.com,1999:blog-5806884.post1984220232174206383..comments2023-10-31T03:18:26.963-07:00Comments on Great Guys Weblog: Great Recession(4): wholesale banking panicBrethttp://www.blogger.com/profile/15063508651955739056noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5806884.post-61041163485687464462010-04-30T03:13:44.334-07:002010-04-30T03:13:44.334-07:00He may have hoped that would create more chaos, bu...<i>He may have hoped that would create more chaos, but don't attribute more knowledge and capability to people than is warranted.</i><br /><br />Which is another way of saying "do not attribute to malice that which is better explained by stupidity."Hey Skipperhttps://www.blogger.com/profile/10798930502187234974noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-29177496573152227782010-04-29T09:29:35.273-07:002010-04-29T09:29:35.273-07:00erp,
Thanks. I tend to stay away from conspiracy...erp,<br /><br />Thanks. I tend to stay away from conspiracy theories as a rule. The most suspicious event we have is the reckless behavior of Schumer regarding IndyMac - the height of irresponsibility. He may have hoped that would create more chaos, but don't attribute more knowledge and capability to people than is warranted. Beyond the building signs of financial stress throughout 2007 and 2008 even close observers of the situation didn't quite know what to make of things. Bernanke was seeing inflationary hints in the real economy and what he thought were liquidity problems in the financial sector. What he had no idea about were the concerns related to solvency arising from the toxic assets and how extreme uncertainty about that would translate into a panic. Had he realized that, more extreme steps taken sooner might have prevented the panic. However, the catch-22 is that absent the panic he would have been declared a mad man for taking such actions.<br /><br />Even very bright and knowledgeable people are far less omniscient than some people would like to believe.Howardhttps://www.blogger.com/profile/14980738175201874292noreply@blogger.comtag:blogger.com,1999:blog-5806884.post-21878761333152318292010-04-29T05:32:50.787-07:002010-04-29T05:32:50.787-07:00Howard, excellent and readable account. Thanks. ...Howard, excellent and readable account. Thanks. Do you think there's anything in the allegation that the financial collapse was orchestrated to explode just prior to the last election?erphttps://www.blogger.com/profile/09826044412670324694noreply@blogger.com