Wednesday, 18 April 2012

Eleven Lessons from the Financial Crisis that Investors Will Soon Forget (If They Haven't Already!)

1.  Borrowing short and lending long is still a bad idea
2.  Accounting matters ... a lot!
3.  Conflicted rating agencies:  still not unbiased observers
4.  Regulate the activities not the actors
5.  "Value at risk" may put your firm at risk
6.  Messrs. Glass and Steagall were right after all
7.  Too big to fail = Too big to exist
8.  Capitalism on the upside and Socialism on the downside is bad policy
9.  Quantitative easing ('Helicopter Finance') has a cost
10.  Insurance without reserves is not insurance
11. Shooting the messenger does not change reality

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