Sunday, April 13, 2008

You don't see this too often

Hyman Minsky: Yes, "it" will happen again

The Financial Times reports that the world's central bankers and global financiers are in open conflict over the course of of appropriate financial regulation in the wake of the latest and greatest world financial crisis.

I'll summarize: at the G7/IMF/World Bank semi-annual meetings over the weekend, the world's private sector bankers told financial officials from the world's top countries, "Yeah we fucked up the financial system pretty fierce. But, seriously, I think we've all learned a big lesson here. We're awful sorry and super triple dog promise it will never happen again. There's no reason why you need to regulate us with this five point, 75 page reform proposal (pdf). We've changed...and by the way, could you spare a few billion?"

Central bankers: "Are you high?"

Says the FT:

And they did not impress one G7 official present, who described their requests as “extraordinary”, making it clear that after the banks had admitted much of the responsibility for the credit crisis, they would have to accept greater oversight and greater constraints on lending in future.

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