tag:blogger.com,1999:blog-8090052523927279923.post387162071222379721..comments2020-07-20T21:35:28.939-04:00Comments on The New Decembrists: Cap This!The Epicurean Dealmakerhttp://www.blogger.com/profile/06590492610853256232noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8090052523927279923.post-22795113542560431992009-12-07T22:48:33.323-05:002009-12-07T22:48:33.323-05:00Are you kidding me? How can Johnson possibly claim...Are you kidding me? How can Johnson possibly claim that the 10% deposit cap "worked well (until Bank of America received a waiver)"?<br /><br /><i>We had a massive financial crisis last year, <b>before</b> BofA went over the 10% deposit cap!</i><br /><br />Yeah, that 10% deposit cap worked <i>wonders</i>. Just look at how well it did preventing Continental Illinois from being deemed TBTF and getting a government bailout. Oh wait, nevermind.<br /><br />The sheer illogic of Johnson's argument is stunning.<br /><br />(If anything, we're lucky that the 10% deposit cap didn't make the crisis much worse. Because of the way the deposit cap statute is worded, BofA was able to acquire Merrill without technically running afoul of the statute. Imagine if the statutory language had been tighter, and BofA had been prohibited from acquiring Merrill on September 14, 2008. Then we would've seen Lehman file for bankruptcy on September 15, followed (very) shortly by Merrill -- which was much <i>bigger than Lehman</i>. Oh yeah, and we still had AIG out there, which was even bigger than <i>Merrill</i>. If the Simon Johnsons of the world have their way (God help us), the next crisis will be much, much worse.)Economics of Contempthttps://www.blogger.com/profile/17251622598490403638noreply@blogger.comtag:blogger.com,1999:blog-8090052523927279923.post-45262383731772073262009-12-07T22:45:49.803-05:002009-12-07T22:45:49.803-05:00This comment has been removed by the author.Economics of Contempthttps://www.blogger.com/profile/17251622598490403638noreply@blogger.comtag:blogger.com,1999:blog-8090052523927279923.post-61927217682441474412009-12-07T18:31:50.748-05:002009-12-07T18:31:50.748-05:00Felix Salmon continues the conversation at his blo...Felix Salmon continues the conversation at his blog:<br /><br /><a href="http://blogs.reuters.com/felix-salmon/2009/12/07/capping-bank-size/" rel="nofollow">http://blogs.reuters.com/felix-salmon/2009/12/07/capping-bank-size/</a><br /><br />He also manages to tie in a comment I made to him in Twitter, which is exactly the kind of cross-platform conversation integration I think we need.The Epicurean Dealmakerhttps://www.blogger.com/profile/06590492610853256232noreply@blogger.com