THIRD RAILS - PROCESS VS. PRODUCT: Dalibor Rohac and Matthew Sinclair: Preparing Another Meltdown - WSJ.com
I recall the Ivy League discussions going back to the 1960's of "process vs. product".
Basel II and now III are clearly of the 'process' variety - i.e. don't use judgment, everyone is the same, happiness of lemmings and no one has to lose.
Clearly sovereign debt is emblematic of the idea of socializing outcomes without any requisite inputs from the recipients of income transfer, high tax benefits.
Another way of describing a bubble is too much for nothing.
As the year winds down, there are many talking about the unsavory outcomes that may await; but, as long as there's a way to finance a 'free lunch', who wants to call a halt?
Governor Christie was recently interviewed and said that the 'third rails' of decision-making are clearly now the only choices for many governors.
Tuesday, December 28, 2010
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