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A good read on the financial crisis


TPS

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For those who have been around here a long time, you know that I've said on several occasions that Minsky is the economist who influenced me the most. This is an excellent read by a managing partner at PIMCO who uses Minsky's analysis to describe the financial crisis.

 

http://www.cfapubs.o.../rf.v2009.n5.15

 

CFA? That's a highly corrupt organization :D

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For those who have been around here a long time, you know that I've said on several occasions that Minsky is the economist who influenced me the most. This is an excellent read by a managing partner at PIMCO who uses Minsky's analysis to describe the financial crisis.

 

http://www.cfapubs.o.../rf.v2009.n5.15

 

Gee, I wonder who else has been saying a similar post-mortem analysis since 2008?

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CFA? That's a highly corrupt organization :D

You know he's grasping at straws when he cites the CFA Institute to make a case. Bunch of clowns. Seriously, was infowars mute on the topic? Couldn't dig something up from cptnpicard/alt.nude.net? Unbelievable.

Edited by Jauronimo
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For those who have been around here a long time, you know that I've said on several occasions that Minsky is the economist who influenced me the most. This is an excellent read by a managing partner at PIMCO who uses Minsky's analysis to describe the financial crisis.

 

http://www.cfapubs.o.../rf.v2009.n5.15

makes a great deal of sense....boom times trigger leveraged speculation which eventually triggers disasters. is capitalism therefore inherently doomed to fail?early on this quote struck me:" this does not make them immoral, merely astute interpreters of the circumsytances they face". so financiers that "progress" from speculative to ponzi models are to be at least understood if not forgiven? seems like moral relativism to me. i think a goodly number are truly immoral or at least amoral.

Edited by birdog1960
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makes a great deal of sense....boom times trigger leveraged speculation which eventually triggers disasters. is capitalism therefore inherently doomed to fail?early on this quote struck me:" this does not make them immoral, merely astute interpreters of the circumsytances they face". so financiers that "progress" from speculative to ponzi models are to be at least understood if not forgiven? seems like moral relativism to me. i think a goodly number are truly immoral or at least amoral.

 

Yes. Communism is the way to go.

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well, in this case i think relativism would be desirable. not the dualism of white = capitalism and black = socialism. do we have any "pure" functioning examples of either?

 

The closest would be Hong Kong.

 

And I thought I had my bases covered with PIMCO....drat!

 

Me and Jauronimo are CFA candidates so it's a little dark humor especially now which is crunch time.

Edited by meazza
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makes a great deal of sense....boom times trigger leveraged speculation which eventually triggers disasters. is capitalism therefore inherently doomed to fail?early on this quote struck me:" this does not make them immoral, merely astute interpreters of the circumsytances they face". so financiers that "progress" from speculative to ponzi models are to be at least understood if not forgiven? seems like moral relativism to me. i think a goodly number are truly immoral or at least amoral.

 

I love the eternal, capitalism is doomed to fail talk. Capitalism is prone to boom & bust cycles, but that doesn't equate to its eventual demise. From the ashes of the previous cycle's bust, another cycle emerges. No one argues that it's painless. The argument is that over a longer period of such cycles, society is better off overall than in socialist or communist regimes which tries to contain the growth to avoid the crashes. In a sense, socialism is a desire to stifle human propensity for innovation.

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makes a great deal of sense....boom times trigger leveraged speculation which eventually triggers disasters. is capitalism therefore inherently doomed to fail?early on this quote struck me:" this does not make them immoral, merely astute interpreters of the circumsytances they face". so financiers that "progress" from speculative to ponzi models are to be at least understood if not forgiven? seems like moral relativism to me. i think a goodly number are truly immoral or at least amoral.

Which is why I rejected the dominant neo-keynesian model in grad school--there is no place for profit-driven banks and private sector debt in their models. Minsky never developed a formal model, but was more descriptive and prescriptive. There are some interesting attempts to develop Minsky-type models using balance sheet accounting; for example, Steve Keen and the folks at the Levy Institute.

 

The closest would be Hong Kong.

 

 

 

Me and Jauronimo are CFA candidates so it's a little dark humor especially now which is crunch time.

I was going to ask which exam you failed, but I didn't want to be so mean...good luck!
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I love the eternal, capitalism is doomed to fail talk. Capitalism is prone to boom & bust cycles, but that doesn't equate to its eventual demise. From the ashes of the previous cycle's bust, another cycle emerges. No one argues that it's painless. The argument is that over a longer period of such cycles, society is better off overall than in socialist or communist regimes which tries to contain the growth to avoid the crashes. In a sense, socialism is a desire to stifle human propensity for innovation.

i suppose it depends on where in the food chain you are and your confidence in remaining at that level or higher.

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Which is why I rejected the dominant neo-keynesian model in grad school--there is no place for profit-driven banks and private sector debt in their models. Minsky never developed a formal model, but was more descriptive and prescriptive. There are some interesting attempts to develop Minsky-type models using balance sheet accounting; for example, Steve Keen and the folks at the Levy Institute.

 

I was going to ask which exam you failed, but I didn't want to be so mean...good luck!

 

Once level 2 and once level 3.

 

Cheers :)

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I love the eternal, capitalism is doomed to fail talk. Capitalism is prone to boom & bust cycles, but that doesn't equate to its eventual demise. From the ashes of the previous cycle's bust, another cycle emerges. No one argues that it's painless. The argument is that over a longer period of such cycles, society is better off overall than in socialist or communist regimes which tries to contain the growth to avoid the crashes. In a sense, socialism is a desire to stifle human propensity for innovation.

 

Or the ability to buy low.........REAL low. :D

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