The famous contrarian shares his thoughts on what we (should) have learned from the most recent financial collapse. His top 11 take home messages:
- Borrowing Short and Lending Long is Still a Bad Idea
- Accounting Matters…A Lot!
- Conflicted Rating Agencies: Still Not Unbiased Observers
- Regulate the Activities Not the Actors
- ‘Value at Risk’ May Put Your Firm at Risk
- Messrs. Glass and Steagall Were Right After All
- Too Big to Fail = Too Big to Exist
- Capitalism on the Upside and Socialism on the Downside is Bad Policy
- Quantitative Easing (‘Helicopter Finance’) Has a Cost
- Insurance Without Reserves is Not Insurance
- 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