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Jim Chanos On Financial Crisis Lessons Learned... And Promptly Forgotten

Tyler Durden's picture


The famous contrarian shares his thoughts on what we (should) have learned from the most recent financial collapse. His top 11 take home messages:

  1. Borrowing Short and Lending Long is Still a Bad Idea
  2. Accounting Matters…A Lot!
  3. Conflicted Rating Agencies: Still Not Unbiased Observers
  4. Regulate the Activities Not the Actors
  5. ‘Value at Risk’ May Put Your Firm at Risk
  6. Messrs. Glass and Steagall Were Right After All
  7. Too Big to Fail = Too Big to Exist
  8. Capitalism on the Upside and Socialism on the Downside is Bad Policy
  9. Quantitative Easing (‘Helicopter Finance’) Has a Cost
  10. Insurance Without Reserves is Not Insurance
  11. Shooting the Messenger Does Not Change Reality

Needless to say, Zero Hedge has been promoting every single of these bullet points for the past year.



Source My Investing Notebook


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Mon, 11/09/2009 - 11:15 | Link to Comment gold_tracker
gold_tracker's picture

Totally agree with everyone of these points too. Hard to figure out why those in DC are so dumb to them.

Mon, 11/09/2009 - 12:13 | Link to Comment Anonymous
Mon, 11/09/2009 - 11:16 | Link to Comment curbyourrisk
curbyourrisk's picture

.pdf anyone?

Mon, 11/09/2009 - 11:24 | Link to Comment RobotTrader
RobotTrader's picture

EWBC up 45% after being given the priviledge of swallowing what was left of the 63- branch United Commercial Bank after the FDIC gutted it on Friday.


Mon, 11/09/2009 - 12:07 | Link to Comment phaesed
phaesed's picture

That's beautiful! So one bank goes bankrupt but yet somehow it's assets increase the value of another 50%.... I wonder who absorbed that loss.... *Sigh*


10. Shooting the messenger does not change reality = classic.

Mon, 11/09/2009 - 11:27 | Link to Comment Anonymous
Mon, 11/09/2009 - 11:37 | Link to Comment hp12c
hp12c's picture

"Capitalism on the Upside and Socialism on the Downside is Bad Policy"

= Priceless

On the profit upswing the refrain is "get the Government off my back"

On the downside " Bail me out, or else"

They stand on the corner of Broad street with tin cups in their hands to catch the taxpayers coins..

Mon, 11/09/2009 - 15:18 | Link to Comment Assetman
Assetman's picture

Those sound bites make for some catchy campaign slogans... for someone with enough balls to challenge The Establishment.

Tue, 11/10/2009 - 00:43 | Link to Comment Anonymous
Mon, 11/09/2009 - 11:55 | Link to Comment rhinotrader
rhinotrader's picture

Bottom line is, mkt is up 70% off lows. Buy at your own risk as eventually it will be worth zero, short at even greater risk as market obviously wants to go much higher. Only answer is that is correct is to not play.

Mon, 11/09/2009 - 11:57 | Link to Comment Rainman
Rainman's picture

And let's make it an even dozen : "When you must turn to the government for a solution, you have already failed".

Mon, 11/09/2009 - 12:32 | Link to Comment Anonymous
Mon, 11/09/2009 - 20:10 | Link to Comment Rainman
Rainman's picture

But what do we do when the government is GS ( not Glass-Steagall ) ??

Mon, 11/09/2009 - 12:04 | Link to Comment Anonymous
Tue, 11/10/2009 - 02:01 | Link to Comment tomdub_1024
tomdub_1024's picture

ROFLMAO...I can appreciate that...I am a bass player....

Mon, 11/09/2009 - 12:08 | Link to Comment crzyhun
crzyhun's picture

I saw this on Glad you took the time to drill down Tyler.

This and the pension issues are gigantic at the local level and mirror the grap at the federal level almost point for point.

Mon, 11/09/2009 - 12:23 | Link to Comment Anonymous
Mon, 11/09/2009 - 12:35 | Link to Comment Anonymous
Mon, 11/09/2009 - 14:05 | Link to Comment carbonmutant
carbonmutant's picture

Anything too big to fail is a sovereign state.

Mon, 11/09/2009 - 14:44 | Link to Comment Anonymous
Mon, 11/09/2009 - 19:37 | Link to Comment Anonymous
Mon, 11/09/2009 - 19:44 | Link to Comment Zippyin Annapolis
Zippyin Annapolis's picture

Kaufman needs to give a few Senate floor speeches on this presentation.

Tue, 11/10/2009 - 06:26 | Link to Comment aus_punter
aus_punter's picture

jim, if youre reading this you will be right on macquarie...getting more Enronesque by the day

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