tag:blogger.com,1999:blog-4449116309625060278.post7548012332945756190..comments2023-08-12T21:49:49.776-04:00Comments on Washington Outside: Book Review: All the Devils Are Here: The Hidden History of the Financial Crisis by Bethany McLean and Joe NoceraNorman Carletonhttp://www.blogger.com/profile/15579375601892383189noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-4449116309625060278.post-78025455824671189852015-12-09T23:29:02.867-05:002015-12-09T23:29:02.867-05:00The distinction is only confusing if one can't...The distinction is only confusing if one can't differentiate between depository and non depository financial institutions. It makes perfect sense to use capital requirements in the way the book does. A useful way to keep it from getting confusing is to think if the reserves are held as an asset or a liability on the institutions balance sheet.Fabianhttps://www.blogger.com/profile/10116394443823378239noreply@blogger.comtag:blogger.com,1999:blog-4449116309625060278.post-6285881912456288612011-07-05T14:37:13.651-04:002011-07-05T14:37:13.651-04:00This is a balanced review, Mr. Carleton, but I can...This is a balanced review, Mr. Carleton, but I can't help but wonder why the authors arbitrarily "started" in the 80's. It's as though they came to the house of cards as the first floor was nearing completion. Did they fail to go back far enough in time, when the foundation of the house was being poured? Wasn't government intrusion into the housing market, in the form of the CRA, the creation of government guaranteed mortgage-backed securities, and the rapid growth of GSE's in response to government pressure to provide homes for low income families, a major contributor to the gathering storm? Weren't the Wall Street sharks reflexively involved in feeding frenzy, with all of their new replaceable teeth (instruments like no-doc loans, ARM's,and other newly crafted risky practices)that could only be expected with so much blood in the water? I want to know who was chumming the water. Wasn't unnatural government pressure in the private mortgage market greatly responsible for creating an atmosphere of lax lending practices, and even thought the slack policies were meant for low income people, wasn't the lowering of standards across the industry the predictable response in order for ALL lending institutions to compete with the GSE's? Government pressure to provide low income housing, especially during the Clinton years, skewed the entire market toward the lowest common denominator, and although there was monumental abuse throughout the system, what were the factors that created the market mess in the first place? Couldn't it be that another foolish attempt at social engineering, by Progressive lawmakers, was the hand that was chumming the water?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4449116309625060278.post-18777404134323828452011-02-17T12:45:45.751-05:002011-02-17T12:45:45.751-05:00Does the book not make a mistake when explaining c...Does the book not make a mistake when explaining capital requirements? It refers to capital requirements as "capital reserves", and says that each dollar of reserves is one fewer dollar that can be loaned. This seems to me to confuse reserve requirements with required capital ratios. The source of funds--equity or deposits--has no necessary connection with the uses of funds.Anonymousnoreply@blogger.com