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
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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
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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
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The reason I ask is because your layout seems different
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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
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Thanks so much.
Please continue to read and share my Blog Posts with your friends.
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All the best. Joyce
My spouse and I absolutely love your blog and find nearly
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Hi! I just wanted to ask if you ever have any issues with
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Hi there:
As far as I know, I haven’t had any hackers.
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All the best. Joyce
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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
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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
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My family every time say that I am killing my time here at net, except I know I
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Thanks so much for your kind words of support.
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Thanks very interesting blog!
Thanks.
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Wow, incredible blog layout! How long have you been blogging for?
you make blogging look easy. The overall look of your web site
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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
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Hi there:
I am always looking for interesting links/ and content for my Blog.
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email-joycesilver621@gmail.com
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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
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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
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Thanks for your kind words of support.
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certainly like your website however you
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Thanks for the advice.
Typos happen. Sometimes I don’t see them in my haste to Post.
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Thanks for your kind words of support.
It’s a pleasure to respond to someone who reads and cares about my writing!
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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.
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I’ll check out your video as well
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Not at all. Please do share my Posts with your myspace group. I’ll look at your uTube video as well.
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Link exchange is nothing else but it is simply
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Thanks for your comment.
I’m learning and will forward others people’s Blogs and Posts as I read them.
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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
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Read and continue commenting.
Joyce
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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