Who killed Wall Street?

What will the post-mortem on Wall Street show? That it was a case of suicide? Murder? Accidental death? Or a rare instance of generalized organ failure?

But before we indict anyone, let's first remind ourselves how compelling the logic of the financial innovation that led us to our current predicament seemed not too long ago.

That is the topic of my latest column for Project Syndicate.   Read it here.

Comments

[Per Kurowski]

Sorry but I am perfectly clear on who was the assassin.

It was the financial regulator who ignored the importance of the markets being able to decide freely who it wants to listen to, and empowered and imposed on the market, thru so many ways, shapes or forms, the opinions of some few credit rating agencies.

Let us not forget that the current crisis did not result from the market investing in badly awarded mortgage loans to what is known as the subprime sector, very few dollars went there, but from investing in prime rated securities collateralized with such mortgages, trillions of dollars did, from all over the world.

Now authorities seem to be threatening with digging ourselves even deeper into the hole, guaranteeing that now there will be better procedures for better credit ratings… or, even starting to rate themselves and so that we can really be sure. This certainly must be the mother of all moral hazards!

[Ben]

How on earth do you not place some blame on the GSE's. While not the sole culprit, they certainly carry much blame vis a vis a congress and executive that encouraged poor lending standards. Completely ignoring that component is also quite irresponsible.

[Wills]

You could also add SEC recognition of rating agencies and the "issuer-pays" business model to that list of causes. Although Egan-Jones is now recognized, it uses a subscriber business model that eliminates significant conflict of interest. I bet Egan-Jones's pre-crisis ratings were much more accurate than those of Moody's, S&P, and Fitch.

[LJR]

What killed Wall Street?

Leverage as in too much.

Duh.

[TM]

That's a terrific column.

[Richard Boltuck]

Good discussion. I'm surprised that you didn't discuss implicit "too-big-to-fail" Federal insurance, and the impact of the resulting moral hazard on leverage and investing risks among the investment banks, particularly (but other large players as well). I've been blowing that horn in several blog discussions over the past few weeks, but Brad Setser now makes the same point quite nicely here: http://www.economist.com/blogs/freeexchange/2008/10/the_hazard_in_moral_hazard.cfm . I think this is particularly important to acknowledge because it focuses on the whole ambit of discretionary policies that might actually prevent recurrence of such crises in the future. We may never be able to outlaw asset bubbles, but we might be able to adopt policies that prevent the repercussions of bursting them from bringing the financial system to its knees.

[Per Kurowski]

Brad Setser: “They must either be reduced in size to the extent that the government's promise to let them fail is credible, or they must become more heavily regulated, particularly where leverage is concerned.”

Any thoughts on what the supervised would prefer?

1. A tax on size based on “the bigger you are the more it hurts when you fall on me”?

2. A progressive income tax based on the market share based on the principle of “the more you have of the market the better and leaner you have to be”?

3. Heavy handed regulations?

Any thoughts about the prospects of moral hazardous mission statements like, “It is not size that matters, it is to turn ourselves into the mother of systemic risk that matters”?

[Kristina Brooker]

I killed wall Street, I'm going out to enjoy the end of demanding strippers.

[Kristina Brooker]

Relativity: could be interpretated as agreeing their is a
communication between what you are thinking and what is going
on around you. You'll be thinking about something, observe
a "severe statistic" and interpret options about what to expect.

[Kristina Brooker]

I'm the interest rate, I choose the credit crisis, how –I’ve been
celibate for seven years to take control of the classing adjustment
coupling would cause (oh that's how you won). So consequently
I could probably have the oil price at $170 currently, how -I was
sleeping to providing days with no expectations, and much ridicule.
Instead on July 16th I started exercising.

The directions in this cash economy come down to this:
1)react
2)fill in personality
3)demand cash

The answer to exiting this economy will always be the same -you
will use a program that the Univeristy of Waterloo (9938493) is
aware of. At a certain point of organizing your life with programs
you'll find everybody is dealing with NEXT BEST THOUGHT.

The program will provide you with directions that are as healthy
and as safe as possible using a process of elimination. A program
will answer the following questions, the best way to remove cash
dependency and determine which option an employee finds most
comfortable.

[Kristina Brooker]

I caused the credit crisis, nobody else caused the credit
crisis. The extent anybody else was involved was simply I was
indirectly told one person having sex in the 80's caused a
recession, I waited and tried to take the job of interest rate.

I want to explain something -I only caused the credit crisis
because all the answers to leaving this cash economy are
products and companies currently in the free market system. My plan
was to lower the interest rate as fast as possible and direct
attention to myself with outrageous macro statistics. Which I have a
tendency to be involved with. Another instance besides the credit
crisis was WW3, though that title is an over exageration for
Isreal invading Hizballahland. What happened was I left Newfoundland
and went to Waterloo in June 2006, WW3 started I thought if I went
back to Newfoundland it would end, and the minute I got information
from the TV in Newfoundland they stated it had ended. I don't
actually understand the marco data but I believe it's basically due
to having the best money because of my ethical bloodline and my
free negative space bloodline (like Jesus).

The solution of using a program to leave the free market system
as healthy and as safe as possible will always be the answer.

It makes sense that the University of Waterloo understands, it is
a technical Uni, this is a technical solution. As well if you
consider the state of industralisation, America's problem is
employment and TV. Canada's employment and TV are close so
relating to the situation in America is easier for Canadian's,
English being the major simaliarity.

That Canada would be a major source of suggestions makes
sense, that Upper class Canada is basically composed of
Waterloo, U of T, McGill, UBC, U of A is true. That amoung these
schools Waterloo is highly competitive concerning the computer
and programming is fair.

[Kristina Brooker]

Since "the news" has made a predictable error my
question is what do you think my "penis position opinion" is,
since with ever opinion the people effecting directions will
check my virile. You'll find I'm number one.
Their are two groups of people you take opinions with, those that
effect and check your class expectations and those your class place
can be determined by the types of statements you have to say to
be expensive.

The point of checking virile is it determines your personal comfort
best which is the best way to be expensive. Given the point of this
economy is to follow the rule of,

Economic Profit:As much money as fast as possible or as long as
possible.

Such games include:
-my sex life affecting your employment, leading to jail finding you...
-women getting directions about work, approved by a male owner
-female payment due to no financial opinion happening through ridicule
-teenagers fitting into class expectation
-drug dealers controlling classing through tv
-the FBI not having a reason to to anything so coming up with
problems for work such as deturing communism.
-problems for the sake of problems for the reaction to keep fitting
class expectation so economic profit increases.
-Problems so that the reaction is "I don't understand"

Of course their are exceptions it depends on comfort.

[Kristina Brooker]

Here's information about sex.

After marriage, live together first, after a certain age, move out of
home, get a job first, love, trust (as expected), go out (opinion),
casual, random (information?).

Do what you want.
I say twenty due to mature conversation.

How sex negatively effects health is called muscle removal, your sex
muscles become more difficult to contract. If your allowed not to
have sex for 4 years that problems has improved as much as it's
going to.

If the police are controlled by drug dealers it doesn't matter that
the phrase to indicate unhealthy sex is "This is illegal sex".

[Kristina Brooker]

-We are not understanding the Rock and or Roll, please explain.

1)React
2)Fill in Personality
3)Demand Cash

How much should I respect you? Do you need lots of money for appearance
safety? Do you relate?

You'll find the bottom of the problem is the female reality of
toss (class), owned (who), tagging. Women have their financial
directions approved by a male owner, rock gets you.

Drug Dealers have problems sleeping while you have options,
correct is uncomfortable for the expensive allocation.

As for reacting the most important question is how much respect do you
get when you sing their little JINGLE. This informs them to tell you
to stop playing the class game.

[Kristina Brooker]

The mother robot's means of survival...

Everybody is taking a stake in her view. Little did she as a child
realise if she was to react like her thougts had a audience she'd
find one. Maybe she thinks her reaction is unexpected/new, Visa
and the drug dealers don't think so.

Mother robot is so nice, so manipulated. Try mother robot try try.

---------------------------------------------------------------------

Ya the kids act stupid like Highschool Musical, it's terribly realistic.
Maybe it's that we use them as social pawns to fake the
employment is reasonable.

"Went to see High School Musical III last night."
"How was it?"
"I should have worked harder in high school so I'm talking to
someone better than you about this."
"It was sweet, all the little girls wanted that moment like
when the black people decided to go to the prom together. I think
their in for a surprise about how boys STILL are at twenty :-) .

-----------------------------------------------------------------------

Why will I robot?

It's like The Smiths line:
"does the mind rule the body or does the body rule the mind
I don't know"

Better said:
-"My body tells my mind things"

over time we notice...

-"Your body tells our mind things"

[Kristina Brooker]

I had a gift from God, "start a environmental engineering company"
I thought "won't that (oil) shrink the economy, of course replacing
consumption could be work." The dream continues...

The Green Technology Sector is hindered by economic profit.
Money spent being green does not have the same returns as other
investment.

[Kristina Brooker]

"The man who truly and disinterestdly enjoys any one thing in the
world, for its own sake, and without caring two-pence what other
people say about it, is by that vary fact forearmed against some of
our subtlest modes of attack."

-The screwtape Letters
By: C.S. Lewis

-The "impressive software" could answer that feeling for you, and
many other questions about exactly what you want (food, exercise, ect).

As an addition: "Everybody is just changing stupidity"

[Kristina Brooker]

-Playing success amongst the spares is a one on one game of "care about
me", then "care about publishing". My ten year endeavor to try to start
my Environmental Engineering Company places me as number 1.

I'm (99386493) king of the spares (1942).

[wjd123]

After reading Dani's article I'm reminded of a Monty Python skit.

A portly man is seated in a restaurant and brought dish after dish until finally declaring himself completely full. He says to the waiter, " I couldn't eat another bite." At which time the waiter tries to remove a dessert dish before the satiated diner. On the dish there remains one last morsel of dessert. The portly man can't bear to see it taken away. He stays the waiters hand and eats the last morsel of dessert remaining on the plate. A moment later he appears startled. He grabs at his portly belly. Too late, he has taken another bite and proceeds to explode all over the restaurant.

[Kristina Brooker]

The Jingle comment game

-placement is determined this way:
Approved success is done amongst the spares, it is a one on one game
of "care about me", then "care about publishing". My ten year endeavor
to try to start my Environmental Engineering Company places me
as number 1.

-Here is the reality of why commenting, taking your opinion, reacting
if your out of place is so scary to a paycheck character:

I'll make light of the most uncomfortable consequence to this
comment.

If you say that everytime at least you understand expensive.

The only welcome comments are Right wing criticisms with a welcome
stake in cash flow, this is the demanded citizen involvement. The
solution is take home pay, break even business. The solution to
implementing these necessities is done with an individual making
clever talented criticisms.

------------------------------------------------------------------------

-Stop making the DRUG DEALER VIEWER have to listen to your
international conversation about me (the inflation oil price) for
better directions about finding twenty dollars illegally.
A lot of people. Until the final second when you fix the bank cards,
being a rapist or assign paid, was safer for the criminal and should
continue. Crime is competing for a percentage of the print and it is
largely responsible for continuing this economy considering the habit
of fitting into employment and expecting that. The criminals are really
involved in your life through TV, they are really competive for control
over you, and the lifestyle is outrageously humiliating. The criminals
are not breakng their character until they are paid to, given their
level of involvement in this continuing this is the same for the rest
of you. The answer to fixing the unemployment and banks is either
yes or no and expectations of the solution are seriously incorrect
for people another CAMPAIGN TO MAINTAIN perhaps (follow the information
in the comment/jingle game).

-The unfortunate nature of changing this system (fixing the bank
accounts with both a GPS phone and monthly welfare) is the minute
you change it you have to accept rolling with the punches. Even if
you could discuss everything you needed to, you are still going to
find unexpected problems and will use computer program to provide
directions, this method improves to deal with this new problem.

[Kristina Brooker]

Health Programs

Basically you'll fix the bank accounts because there is software the
University of Waterloo (99386493) is awear of, this software "knows
what you want" using a process of elimination, I can't stress the
available success of health programs. Which basically explain the
best way to expect pain, the best way to be realistic during pain
and control over improving these types of questions about what you want.
It's likely vocabularly needs to be adjusted to understand
things such as graphs which indicate what is happening, and help you with
predictable. Quickly explained statements are like muscles for you body
and graphing them happens considering what is on you x-axis (defined
information) and what is the y-axis (my question). The reason statements
about your body can be viewed as muscles is because "observing a
statistic changes a statistic" the program can control observing
statements about your health with this type of vocabularily.
An example of a statement your mind could adjust is "my burise
only hurts when I touch it" your mind then exercies your arm muscle
away from your bruise.
As a fair point anybody over 25 would know satisfaction is
better described as minimizing pain.

[Kristina Brooker]

"Maple" highly complementary
to any job. You can annimate quickly by following the guide which indcates shapes are functions, and more about functions.

When considering fixing the enployment, if you were to take the view of doing what engineering wants in terms of education, government and business; that would be the only way to discuss and plan solutions.

[Kristina Brooker]

If the government/businesses decied to approve my media choices who should the top business (interest rate) answer to, who is my employer?

Organizing who the employers are, while reorganizing and after
welfare/directions are distributed is a difficult question, it's fair to expect young, unclassed, computer friendly, professionals to be preferred as the designated employer. So young professionals.

Anyway allocating control over my media influence as one of your first moves to employment at capacity is a necessity because of the difference in your stocks, oil, interest rate...

Just as a hypothesis, because I've followed rules with great care, I can help you get what you want (due to relativity). Even if controlling my schedule doesn't aquire the people reorganizing more sucessful bets (demands), I specifically am out of the way.

[rate my wife]

all the crooked traders on wallstreet failed. this is such a scam and hope obama will arrest them.

[rate my body]

wallstreet killed themselves. it is so sad to see. there are so many crooks on wallstreet.

[Kristina Brooker]

"The intentional error"

People who are in media are a business and they have this
pattern of statement; they realize the error in the statement,
and know all the possible responses.

For example: Lets complain about the new addition to your
household electricity system, the smartmeter. Lets make the
complaint: "I expect a backstop for this product." or "I expect
this product to improve and both versions worth the investment."

(If you don't know "backstop" means replacing a product because
of environmental improvement.)

The company knows the responses, they are accepting criticism in
this way:

The initial consumer ranking game is "comfortable marriage"

1) Who is your assigned male?
2) Explain why he was employable?
3) Does your memory indicate that your finances want to fit in?
4) Are you changing the system?

The purpose of ranking consumers though marriage-ability is the
next obviously important "personal comfort". Personal comfort
is obviously important to pricing, the economic lingo that is
usually used in it's place is happiness or satisfaction. I
really want to point out that the consumer ranks those
qualities arbitrarily, it is your personal taste, style,
attitude, your cool, that you fit in the same as years ago.

Personal comfort is exactly why their are twenty times the number
of raw resources that go into a car vs. a computer, yet the pricing
is what the consumer will pay for comfort or satisfaction.

So who's "personal comfort" changes the company, by setting
consumer trends, changing prices, effecting shares changing the
CEO. The people who at the same time claim approval of a respected
male income.

The fact that the person running the business changes but follows
the same systematic conversation running the company, indicates
their is simply a pattern to running a company, they change the
company like most other consumers, they simply bring their
"marriage comfort" hence "personal comfort" for the consumers
preference, relating to the important consumers preemptively.

So is my only response to media, "dad had a perfect death".

[rado watches]

Why is everyone just montblanc watches willing to accept power cuts? Don't you think that patek philippe watches having continious power is your right? If people aren't going to demand rado watches 24X7 power, don't expect anything zenith watches to change. The government needs to look at other sources parmigiani watches of power generation. The only solution is more power panerai watches production. Nothing less.
http://www.watchvisa.com/montblanc-watches.html
http://www.watchvisa.com/patek_philippe-watches.html
http://www.watchvisa.com/rado-watches.html

[ghd straighteners]

GHD straighteners was kmown as ghd flat iron, which was authorized online seller provides all kinds of hair straighteners,pink ghd,purple ghd,babyliss. By visiting ghd australia , you will find what you want and made yourself more beautiful.If you miss it ,you miss beauty.Buy a piece of ghd for yourself.Come and join us http://www.ghdoutlet-au.com/ to win the ghd iv styler.

[birkenstock]

Birkenstock was Made in Germany since 1774 . Check out our Birkenstock sandals and Birkenstock shoes including the Birkenstock gizeh,at the lowest regular outlet prices, free shipping and when you put on Birkenstocks. you will feel very comfortable.

[gucci handbags sale]

nothing is impossible.

[cheap mbt shoes]

Thank you for introducing me the useful information.And .....Totally boring. can you tell me where is the red and gold colors...? I predict a very low seller....I look forward your answer.thank you!

[Nike Air Jordan]

nothing is impossible.

[jordan shoes]

I am happy to find this post very useful for me, as it contains lot of information. I always prefer to read the quality content and this thing I found in you post. Thanks for sharing.

[jordans for sale]

Thanks a lot for sharing. You have done a brilliant job. Your article is truly relevant to my study at this moment, and I am really happy I discovered your website. However, I would like to see more details about this topic. I'm going to keep coming back here.

[jordan shoes]

This is a wonderful site. The things mentioned are unanimous and needs to be appreciated by everyone.

[Account Deleted]

raf

Thanks.

[Account Deleted]

http://www.ghdstyle-au.com/ghds.html
http://www.chihairflatirons.us
http://www.ghdsoutlet.com
http://www.googleghdhair.com

[Account Deleted]

We divvy up the stream of payments on these home loans further into tranches of varying risk, compensating holders of the riskier kind with higher interest rates.

Software Development Firm

[Account Deleted]

Many places and centers offer business and trade promotions to both buyers and supplier.What about the differences in skill intensities across industries? The job losses in the relatively unskilled-labor intensive battery industry should have little effect on the relatively skilled-labor intensive machinery
sexshop
sexyshop
sexshop online
alongador peniano

[Account Deleted]

If you need more traffic to your website check out the website in my name. It really helped me and i think it can help your website.

organic seo service

[SellHouseNash]

Great post!

SELL YOUR HOUSE NASHVILLE