Tag Archives: tbtf

Alignment with the Risk (H.R. 10)

The US House passed The Financial Choice Act. H.R. 10 is supposed to align financial services with the incentive to produce economic growth. Since incentives naturally align with the fully assumed risk of loss, HR 10 is all about choosing … Continue reading

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Repeal Appeal

Glass-Steagill was repealed because President Clinton’s “working group” on economic policy, and Congress, decided it was the best-and-the-brightest thing to do. The financial sector then consolidated while President Bush returned the budget surplus “back to its rightful owners.” A more … Continue reading

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Futilitarianism

Capitalism intends to annihilate the risk, which in practice, attending to it, we discover its utility. It can be accumulated into a TBTF proportion, creating a big ugly monster that induces an ever-larger risk proportion to keep it from failing, … Continue reading

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Impropriety by Default

Let’s say we let TBTF financials fail because if you deserve to fail–because you worked harder than everybody else to earn it–then failure has proper utility. What’s the risk? Puzzling that there is a call to let TBTF financials fail, … Continue reading

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Controlling for the Common Cause

Conserving the value of the risk is job one–the prime objective–supported by the common cause. Fighting terrorism, for example, is a common cause, but tends to ignore the method likely to yield it. Consider, for example, former AG Eric Holder. … Continue reading

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Demanding the Construction

Constructing the Argument Capitalists construct an argument to justify the way they do “things.” (The “internet of things” now, for example.) Capitalism, they explain, optimizes utility (reducing costs to practically nothing). The utilitarian argument is a philosophical argument. It not … Continue reading

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Demanding Less for More

The less the more…makes sense doesn’t it? Less demand yields more supply. Gaining less to have more is not exactly an additive identity. It is more nihilistic than additive, but that does not mean the reality is any less addjective. … Continue reading

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