
I listened to a Conversation with Peter Orszag, Conducted By The Atlantic’s Interviewer Steve Clemons ( Washington’s Editor at large) After listening and asking questions, I thought there’s lot’s to worry about. We’ve got brilliant self promoting kids, dazzling us with their brilliance and what do they know, they know numbers. They know algorithms , but they don’t know people . They don’t understand the effect of their numbers on people. Technology is not a tragedy, doing everything by the numbers, is a tragedy.
You need smarts , life experience and compassion to run a Country. Otherwise, you are never going to look at the big picture and the effects of Policy and politics on the People! According to Peter, this is in fact a big problem, government cannot attract big picture thinkers, the macroeconomics are lacking!
Peter Orszag was described as a policy wonk. According to the World of Words, A policy wonk, by definition, is a person consumed by minutiae who does not see the big picture. Why would anyone be happy to be described as a policy wonk? By definition, it means, you know a lot about nothing.
Worse with the revolving door, forever swinging between government and business Peter Orszag has gone from the office of Budget and management to Vice chair of Citigroup Global. ( for further information , see The Atlantic Live for the entire dialog with Peter Orszag). When I asked whether Banks would have been better off with Glass Steagall rather the Dodd Frank, his reply , “Regulations don’t matter”! ONLY BANK CAPITALIZATION MATTERED. When, I asked, how much capitalization, meaning the ratio, or % of capital to be maintained vs assets! , he said ,” we follow Basel 3“. For those of you, not Policy wonks, I’ve added a link to Basel 3. , however; the short view is 6% of assets need to be retained to protect Banks against risk. They can define their assets and they can hold money, capitalization, as collateral against risk. Theoretically , they can be leveraged 90% ? Sounds risky to me. Peter Would not discuss the mechanism nor would he discuss the amount of Capitalization required to prevent risk. He merely reiterated, all you need to know about Banks, is One Word, Capitalization. That’s sufficient to keep the Banks accountable and ” honest”, I presume.
I thought back to Dustin Hoffman‘s character, Benjamin, in the film, THE GRADUATE. Benjamin, trying to find his niche in life is cornered by his father’s friend, who imparts a single word of wisdom: ” There’s only one thing you have to know Benjamin, that’s PLASTICS.” PLASTICS is all you need to know. Just like Benjamin in the film, I , too, felt I heard a momentous pronouncement, but didn’t grasp it’s meaning. So now I’m perplexed as this earnest young man , Peter Orszag, says we only need to know Capitalization. That’s enough to keep Bankers in line? Really, we know how that movie ended once and we’re going down the same road again. The only difference , the middle class can’t bail the Banks out anymore, so the Federal Reserve is propping up the Banks for us. Why can’t the Banks stand on their own two feet, like we’re expected to do. The Banks have been given the opportunity to write Dodd Frank, they have been capitalized but they are still taking on risk. They are too big to fail, but they can, if we care, be responsible. Since they’ve made Trillions they should contribute at least 15% of their gross into a default fund, available for Bank bailouts, when required .
The Eu is considering this strategy: They are looking to establish a centralized Bank fund, contributed to by all Banks under their jurisdiction, containing enough Capital to fund Banks, as they are being unwound into insolvency. Sounds like a plan, a default account, established by the Banks for the benefit of all Banks!
Is this what Peter Orszag meant. Step one toward accountability and responsibility? We have choices.
Related articles
- LIVE: Interview with Peter Orszag (theatlantic.com)
Useful information. Fortunate me I discovered your web site by chance, and I am surprised why this accident didn’t
happened in advance! I bookmarked it.
Thanks so much for your kind comments.
I’m delighted to share my thoughts and appreciate your feedback.
Wishing you the best. Joyce
Point well taken.
Though I know English, I sometimes rush my Post’s.
My need to Publish sometimes outweighs my need to proofread.
Thanks for sharing your thoughts.
Feel free to comment and share my Posts with others.
All the best. Joyce
each time i used to read smaller content which as well clear their motive, and that
is also happening with this piece of writing which I am reading
here.
Thanks for your kind words.
I try to make my content clear and understandable.
I am passionate about my subject and wish to be accurate.
Thanks again. Joyce
Excellent blog! Do you have any tips and hints for aspiring writers?
I’m planning to start my own blog soon but I’m a little
lost on everything. Would you suggest starting with a free platform like WordPress or go for a paid option?
There are so many options out there that I’m completely overwhelmed ..
Any tips? Bless you!
Au contraire, bless you for your kind comment. I write.
I’m self motivated and started on Word Press which I found easy to navigate.
I wish I had more technological skills.
My one tip, write from your heart, it takes time to find your voice, but you will.
All the best. Joyce
Hello would you mind sharing which blog platform you’re using?
I’m looking to start my own blog in the near future
but I’m having a hard time making a decision between BlogEngine/Wordpress/B2evolution and Drupal.
The reason I ask is because your layout seems different
then most blogs and I’m looking for something completely unique.
P.S Apologies for being off-topic but I had to ask!
No problem. If you don’t ask, you’ll never find out what you are missing.
I use word press. It started out free, but I registered my name and I think I added the ability to increase distribution.
Otherwise, this has been my design since day 1, 5/25/12.
Glad you like the layout.
Please keep reading and sharing.
All the best. Joyce
Thanks , I have recently been looking for info about this topic for a
long time and yours is the greatest I’ve found out so far.
However, what about the bottom line? Are you sure in
regards to the supply?
Thanks for your comment.
That’s the problem. The Banks have been “playing fast and loose ” with their Assets, so “the bottom line” may be fuzzy.
That’s why we need technology, transparency, accountability and responsibility.
All the best. Joyce
I like what you guys are usually up too. This type of clever work and
exposure! Keep up the great works guys I’ve included you guys
to blogroll.
Thanks so much.
Please continue to read and share my Blog Posts with your friends.
Maybe we’ll help others , by understanding and starting to think creatively.
All the best. Joyce
My spouse and I absolutely love your blog and find nearly
all of your post’s to be just what I’m looking for.
can you offer guest writers to write content to suit your
needs? I wouldn’t mind writing a post or elaborating on most of the subjects you write related to here.
Again, awesome web log!
Thanks for your support and Kind comments.
I’d be interested in reviewing your work.
Can you direct me to your website and let’s see if we can share?
Wishing you the best.
Please contact me @ joycesilver621@gmail.com
Thanks again. Joyce
Hi! I just wanted to ask if you ever have any issues with
hackers? My last blog (wordpress) was hacked and I ended up losing several weeks of
hard work due to no data backup. Do you have any methods to
stop hackers?
Hi there:
As far as I know, I haven’t had any hackers.
But I have my preliminary thoughts and notes in several places along with my data.
You might want to back up your Posts to a flash drive on a frequent basis.
All the best. Joyce
Very great post. I just stumbled upon your weblog and wished to mention that I’ve truly loved surfing around your blog posts.
In any case I’ll be subscribing on your feed and I’m hoping you write again very
soon!
Thanks for your support.
I have just written 4 Posts on Financial Reform along with proposed solutions.
Let me know your thoughts. Any personal stories to convey?
Happy to share and expand the conversation . All the best
Joyce
Thanks so much.
Happy you are grazing my Blog Posts like I graze the News.
Keep reading. I think I’ve made a good case for preserving the Middle Class and job creation.
Let me know what you think.
All the best. Joyce
Thanks. This has been one of my more Popular Posts.
Wishing you the best.
Please continue reading, I’ve released at least 10 Posts since this was Published.
All the best. Joyce
It’s really very complex in this active life to listen news on Television, so I simply use the
web for that purpose, and obtain the newest information.
Thanks so much for commenting.
Glad you liked my Posts
Please continue to read and comment
All the best. Joyce
Thanks.
I, too, believe the WEB provides us with an alternative to media!
I take the news, synthesize it and provide my commentary.
Enjoy! I’m doing the work and love it!
All the best. Joyce
Thanks so much.
This has been one of my most popular Posts.
I attended an Atlantic Live conversation in order to present the facts.
All the best. Joyce
Thanks again for your kind comments.
I think social media is able to synthesize the News.
I’m up to date.
All the best.
Joyce
I was suggested this blog by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my trouble.
You’re incredible! Thanks!
Thanks for your kind words.
I write this Post and administer my Blog site: thevoiceofjoyce
Glad you’re enjoying my Blog.
All the best. Joyce
My family every time say that I am killing my time here at net, except I know I
am getting familiarity every day by reading such good posts.
Thanks so much for your kind words of support.
Please continue to read my Blog and share with friends.
All the best. Joyce
Thanks very interesting blog!
Thanks.
I appreciate you taking the time to say, interesting Blog.
Please share with your friends and comment.
All the best. Joyce
Wow, incredible blog layout! How long have you been blogging for?
you make blogging look easy. The overall look of your web site
is fantastic, let alone the content!
Thanks so much for your kind words of support.
I’ve been blogging since 5.26/12.
I set up the format on Word Press and stayed with it.
All the best. Joyce
Please let me know if you’re looking for a article author for your
blog. You have some really good posts and I believe I would be
a good asset. If you ever want to take some of
the load off, I’d really like to write some content
for your blog in exchange for a link back to mine.
Please send me an e-mail if interested. Thanks!
Hi there:
I am always looking for interesting links/ and content for my Blog.
I appreciate your offer.
Please email your link. I’d like to review your content.
Then we’ll talk.
email-joycesilver621@gmail.com
Thanks so much for your support. Please keep in touch and comment and share my Blog with friends.
All the best. Joyce
Wow, marvelous blog layout! How long have you been blogging for?
you make blogging look easy. The overall look of your web site is magnificent, let alone
the content!
Thanks for your kind words of support.
I’ve been Blogging since 5/26/12.
I keep learning. Please continue to read, share and comment on my Posts.
All the best. Joyce
Since the admin of this website is working, no question very rapidly
it will be well-known, due to its quality contents.
Thanks for your kind comments of support.
Please continue to read, share and comment.
Have a great day.
Joyce
Thanks.
I am a sole provider of content and admin.
Your comments are gratifying. Wishing you the best.
Joyce
Very descriptive article, I loved that a lot. Will there be a
part 2?
Thanks. I’m not sure if there is another interview scheduled with Peter Orsag.
I’m looking for an invite with Hank Paulson and have signed up for a conference with Rubin and Summers!
Will keep you informed.
All the best. Joyce
Heya i’m for the first time here. I came across this board and I find It really
useful & it helped me out much. I hope to give something back and aid
others like you helped me.
Thanks for your kind words of support.
This has been one of my more popular topics.
Let me know how I helped you.
Wishing you the best. Joyce
certainly like your website however you
have to test the spelling on several of your posts.
A number of them are rife with spelling problems and I in finding it very bothersome to
inform the reality however I’ll surely come back again.
Thanks for the advice.
Typos happen. Sometimes I don’t see them in my haste to Post.
Please continue to read my Blog, share with friends and do comment.
All the best, Joyce
What’s up it’s me, I am also visiting this site daily, this website is
really fastidious and the visitors are truly sharing good thoughts.
Thanks for your support.
I Post at least once a week.
Enjoy! All the best.
Joyce
Nice post. I was checking constantly this blog and I
am impressed! Very helpful information particularly the last part 🙂 I care for such information a lot.
I was seeking this certain information for a very long time.
Thank you and good luck.
Thanks for your kind words of support.
It’s a pleasure to respond to someone who reads and cares about my writing!
Please continue to read, share my posts and comment.
All the best. Joyce
Thanks for your comment.
I provide original content based on conversations with experts in the field or reliable media sources.
Please continue reading and sharing. Become part of this Community.
Write more, thats all I have to say. Literally, it seems as
though you relied on the video to make your point.
You obviously know what youre talking about, why waste your
intelligence on just posting videos to your site when you could be giving us something enlightening to read?
I really like what you guys tend to be up too. Such clever work
and exposure! Keep up the wonderful works guys I’ve added
you guys to my blogroll.
I read your post and seems to me one of the best post I ever read. Thanks guys I like it very much. I get everything whatever I need to know about that topic. I have a very big friend list and more importantly, I am thinking to share everything with my friends what I learn about your post and also thinking to refer your website to learn more. Thanks buddy. Keep doing your great work. wish you the best of luck
Good day! Would you mind if I share your blog with my myspace group?
There’s a lot of folks that I think would really
enjoy your content. Please let me know. Thank you
Please do! Thanks for your support.
I’ll check out your video as well
All the best. Joyce
Not at all. Please do share my Posts with your myspace group. I’ll look at your uTube video as well.
All the best. Joyce
Link exchange is nothing else but it is simply
placing the other person’s website link on your page at
proper place and other person will also do similar in support of you.
Thanks for your comment.
I’m learning and will forward others people’s Blogs and Posts as I read them.
I want everyone to have an interesting and enjoyable experience.
All the best. Joyce
Good way of explaining, and pleasant piece of writing to obtain facts regarding my presentation subject matter,
which i am going to convey in university.
Thank you.
Please share your “paper” with us.
Always looking to continue our dialog as a Community.
All the best. Joyce
What’s up, constantly i used to check webpage posts
here early in the daylight, as i enjoy to learn more and more.
Thanks for following.
I look forward to keeping everyone up to date.
Wishing you the best.
Read and continue commenting.
Joyce
What’s up, I would like to subscribe for this webpage to get
hottest updates, so where can i do it please assist.
Hi: Gladly. Please contact me @grandmajsilver on Twitter or thevoiceofjoyce.me on word press.com.
Thanks for your support.
Please continue to read my Posts and comment.
All the best. Joyce