{"id":2059401,"date":"2017-01-17T11:10:58","date_gmt":"2017-01-17T05:40:58","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=2059401"},"modified":"2017-01-17T11:10:58","modified_gmt":"2017-01-17T05:40:58","slug":"book-review-boomerang","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2017\/01\/17\/book-review-boomerang\/","title":{"rendered":"Book Review: Boomerang"},"content":{"rendered":"

Boomerang – Travels in the New Third World<\/em> (Amazon<\/a>,) is about how the 2008 banking crisis morphed into a sovereign crisis. (Excerpts<\/a>)<\/p>\n

Thoughts<\/h3>\n

The 2008 Global Financial Crisis established a few things:<\/p>\n

    \n
  1. If you fail, make sure you fail big. Bankruptcy is for the little guys.<\/li>\n
  2. Banks are an extension of state policy.<\/li>\n
  3. There is no getting rid of moral hazard and the principal-agent problem.<\/li>\n
  4. It will happen again.<\/li>\n<\/ol>\n

    This book adds a 5th one to the list: a country’s banking system reflects the society within which it operates. It embodies and amplifies all the cynicism, envy and hypocrisy of its owners, regulators and customers. <\/p>\n

    After reading this book, I wonder if all banks should be forced to become utilities where the state guarantees a certain return on equity to its shareholders and the banks are allowed to take a narrow set of very specific risks. For example, the regulated power and gas utilities in the US have a guaranteed monopoly status within a region, allowed a fixed maximum return on capital and a highly regulated set of activities.<\/p>\n

    As usual, Michael Lewis does a good job of presenting his research is easy to digest chunks of wit. Highly recommend that you read the book.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Boomerang – Travels in the New Third World (Amazon,) is about how the 2008 banking crisis morphed into a sovereign crisis. (Excerpts) Thoughts The 2008 Global Financial Crisis established a few things: If you fail, make sure you fail big. Bankruptcy is for the little guys. Banks are an extension of state policy. There is … <\/p>\n","protected":false},"author":2,"featured_media":2059411,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4023,9],"tags":[3751,3761],"class_list":["post-2059401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-book-reviews","category-your-money","tag-book","tag-review","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2059401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=2059401"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/2059401\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media\/2059411"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=2059401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=2059401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=2059401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}