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Weekly Wrap: Reforming the banks
A Wall Street sign in New York City's financial district.
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Hey Kai;
I share your "crisis missed" sentiment, and have also been contemplating that the "just wait... ah.. business as usual" direction is the one we seem to be taking.
How about a show on that and how the rest of us should deal with guarding against fat-cat torpor and stubborn inertia?
As a musician - spending my whole life dealing with a stubborn, insular, downward spiraling music business - I'm thinking micro solutions.
Maybe as in third world country micro-lenders do, we should get big banks out of small business and personal credit markets.
Like how about local business stock markets? Invest in businesses in your own community.
Thoughts....
What do you do with a fat cat? Let it sleep in the sunroom while you get busy cleaning up the rest of the house.
Cheers!
b
Simple Solution:
Obtain 3 "genuine" (written) offers for contested assets, else write them down to zero UNLESS (a) the transaction was cleared through an established Clearing House, or (b) an enforceable insurance policy or letter of credit was issued in support of the asset in question.
Questionable assets would not be "admitted" without first obtaining the appropriate reserve (equity) or a true Third Party Representation of value. This doesn't mean that you can't buy and own them; it just means that an appropriate level of Asset Mix (i.e., portfolio theory) would be maintained - as verse more recent overkill.
Studies have shown that a small amount of Arsenic can be beneficial, while a larger dosage is fatal - ask the Lehman Brothers.
Banks being Fail Safe - you are welcome, happy to help.
Enjoy your Holiday Weekend.
