Taleb gives his thoughts on banking policy and growth

The banks have hijacked the government, debt vs. equity and the agency problem
Taleb, the author who has been warning investors and policymakers on the dangers of debt and agency problems in banks, gives another straightforward interview. Here are a few points we have come to understand from the interview:

  • Through the bailout and stimulus, the government has merely transferred money into the pockets of bankers
  • The agency problem is still unresolved: Socialized losses and private bonuses will remain the norm
  • Fed policy supplies the banks with cheap money but yields no productive utilization
  • The term “growth” is often misused. A ponzi scheme creates growth but not wealth
  • Taleb’s warnings on robustness and fragility continue to be ignored

This is a short interview and well worth a viewing:

This entry was posted in Debt, Derivatives, Economics, Government, Government Spending, John McClelland, Monetary, Philosophy, Politics and tagged , , , . Bookmark the permalink.

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