Go Back   Bloggingheads Community > Diavlog comments
FAQ Members List Calendar Search Today's Posts Mark Forums Read

Notices

Diavlog comments Post comments about particular diavlogs here.
(Users cannot create new threads.)

 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #11  
Old 11-13-2011, 01:40 AM
Namazu Namazu is offline
 
Join Date: Jan 2007
Posts: 185
Default Re: Fernholz: Hack, Carney: Clueless

Quote:
Originally Posted by stephanie View Post
Absolutely. I think that's why Tim had the reaction he did. I thought Timothy ended up seeming kind of ridiculous, like he was reaching for something his example didn't support.

And I agree with the rest of the post.
From a financial markets perspective, Timothy's point was obvious. Forget Corzine and compare Bank of America to smaller, sounder banks which aren't at risk of being sued out of existence. B of A's lower borrowing cost is a monumental "too connected to fail" taxpayer subsidy. A "key man" provision for shareholders would have been a measure of Corzine's unique ability to grow MF Global, but the bondholders accepted a lower return for his unique ability to salvage some of their investment should the stock go to zero. Unique connections would be an asset. Tim should do his homework before invoking Occam's razor, and not strain so hard against the obvious.
Reply With Quote
 


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 02:14 PM.


Powered by vBulletin® Version 3.8.7 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.