tag:blogger.com,1999:blog-6948982521501107752.post1262174969679456627..comments2023-10-21T09:03:15.270-04:00Comments on Rogue Economist Rants: The indomitability of riskRogue Economisthttp://www.blogger.com/profile/03439817966760459091noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6948982521501107752.post-8996827215004325412010-03-13T18:13:01.612-05:002010-03-13T18:13:01.612-05:00Arthurian, to answer your question as to my prefer...Arthurian, to answer your question as to my preference, I wouldn't mind it if we did away with CDS altogether. But that is coming from someone who never had any use for them, I'm sure that US capital marketmakers would say otherwise.<br /><br />But personally, if you think a particular investment is sufficiently risky that you need to buy insurance on it VIA CDS, then you are better off not taking the risk at all. The presence of CDS merely encourages you to buy something which you know to be junk because in your mind, with the CDS, you can collect on it somehow.Rogue Economisthttps://www.blogger.com/profile/03439817966760459091noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-12904395265594766062010-03-13T15:08:25.163-05:002010-03-13T15:08:25.163-05:00Hello Rogue. Sir, your last paragraph above is exq...Hello Rogue. Sir, your last paragraph above is exquisite. And (for the record) I thought your post was very good. (Otherwise I would not have been drawn to comment.) And you seem to have understood that it was my intent, at least, to be interesting (as opposed to, say, rude). For this I am grateful.<br /><br />You got invited to be a contributor to Seeking Alpha?? Nice. <br /><br />RE: Your "desirability of a specific operationality" paragraph... You list a variety of possible policy preferences. I think this is what Alan Blinder and Robert Heilbroner have called "disarray." I think we are past the time for such niceties. <br /><br />Surely you <i>have</i> a preference, no? Or are you satisfied to fiddle while... well, you know.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-23334863166855493152010-03-11T23:11:02.622-05:002010-03-11T23:11:02.622-05:00Thanks Arthurian, for the comments and thoughts. M...Thanks Arthurian, for the comments and thoughts. My aim here really is to just put forth some principles (the phrases in bold), though I did get to some operational implications (the phrases following the bold). <br /><br />The desirability of a specific operationality may actually vary from person to person. Some people may want to ban derivatives altogether, some may just want to regulate it, and some may just want participants to have sufficient capital and/or collateral. And then some people want to put them in a clearinghouse, some onto exchanges.<br /><br />Before we agree on the action, we should at least acknowledge the principles - and the most basic of which is that risk once created does not disappear (without undoing a transaction), it is only reallocated to other parts of the system.Rogue Economisthttps://www.blogger.com/profile/03439817966760459091noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-29877685645432859962010-03-11T21:23:31.728-05:002010-03-11T21:23:31.728-05:00I am drawn to organized expressions of thought suc...I am drawn to organized expressions of thought such as <a href="http://ritwikpriya.blogspot.com/2010/01/macro-cube-1.html" rel="nofollow">this</a> from Ritwik Priya, and your list here. <br /><br />If you are up for disorganized critique, I offer one: Though you have done well with it, I think you are too entangled in details. Depends on one's objective, to be sure. But I can take your First Law of Risk and use it to solve the economic problem. You write: "The more transactions they enter, the greater the potential income and risk."<br /><br />Solution: Don't let them enter so many financial transactions. As <a href="http://baselinescenario.com/2009/09/01/the-nature-of-modern-finance/" rel="nofollow">Simon Johnson</a> has it: "But is it really healthy – or even sustainable – to have a finance sector as large as what we face today?" Or as I have it, the problem, simply, is excessive reliance on credit. <br /><br />I see that you get there eventually, in your Implication #4. But then your idea there sounds like micromanagement. And you move on to your #5, which seems to be your conclusion: that a Centralized Clearing House is needed so that we may continue to have too many financial transactions.<br /><br />Offered as something to kick around.The Arthurianhttps://www.blogger.com/profile/16501331051089400601noreply@blogger.comtag:blogger.com,1999:blog-6948982521501107752.post-62547785342224794752010-03-01T21:18:45.207-05:002010-03-01T21:18:45.207-05:00This is a wonderful website!!
勉強になります。ありがとう! Than...This is a wonderful website!! <br />勉強になります。ありがとう! Thank you!!<br /><br />I'd be pleased if you exchange reciprocal link with me.<br />よろしくお願いします。<br />お互いがんばりましょう。<br /><a href="http://easy-happy-invest.blogspot.com/" rel="nofollow">http://easy-happy-invest.blogspot.com/</a><br /><br />この記事の中でリンクしています。<br />(2010/03/01)<br />Easy investment : Balance sheet <br /><a href="http://easy-happy-invest.blogspot.com/2010/03/balance-sheet.html" rel="nofollow">http://easy-happy-invest.blogspot.com/2010/03/balance-sheet.html</a><br />良かったらご覧になってください。investment catcherhttps://www.blogger.com/profile/01047492727830789098noreply@blogger.com