This page has been archived and commenting is disabled.

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

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 11/09/2009 - 11:15 | 124597 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 | 124669 Anonymous
Anonymous's picture

No it is easy to figure out why those in DC are so dumb. Dumb like a fox is more like it. The people who gave those in government the money to get elected are also supplying the policy advisers and preparing all the research for them to read.

Mon, 11/09/2009 - 11:16 | 124599 curbyourrisk
curbyourrisk's picture

.pdf anyone?

Mon, 11/09/2009 - 11:24 | 124612 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 | 124661 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 | 124617 Anonymous
Anonymous's picture

Let me tell you why those ass clowns in DC aren't doing anything to protect the little-guy.

They don't care. The scope of this catastrophe is off every chart they have been given. Lawmakers have previously and continue to view this crisis cynically, as if all is already lost, let's not look under the rug.

So in other words, the way out is to let someone else deal with it. (Or divert attention to the looting of Jon Taxpayer elsewhere like wars, healthcare, blah blah blah)

THROW THE BUMS OUT!!!

Mon, 11/09/2009 - 11:37 | 124625 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 | 124931 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 | 125539 Anonymous
Anonymous's picture

Like Peter Schiff???

Mon, 11/09/2009 - 11:55 | 124643 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 | 124645 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 | 124699 Anonymous
Anonymous's picture

Government has solutions. Government is us. Government needs to be run by people with integrity who give a damn about other people - and not by people who don't believe in government. Unregulated, lasseiz-faire, predatory capitalism is a disaster. Re-read point #6.

Mon, 11/09/2009 - 20:10 | 125290 Rainman
Rainman's picture

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

Mon, 11/09/2009 - 12:04 | 124655 Anonymous
Anonymous's picture

Marty DiBergi: Why don't you just make ten louder and make ten be the top number and make that a little louder?
Nigel Tufnel: [pause] These go to eleven.

Tue, 11/10/2009 - 02:01 | 125594 tomdub_1024
tomdub_1024's picture

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

Mon, 11/09/2009 - 12:08 | 124663 crzyhun
crzyhun's picture

I saw this on briefing.com. 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 | 124683 Anonymous
Anonymous's picture

But, wait... Dick Cheney famously said: 'President Reagan taught us deficits don't matter.' - but now they do matter? When did that change?

Mon, 11/09/2009 - 12:35 | 124705 Anonymous
Anonymous's picture

Crazy ole "Uncle Jim", all that money and he still has to pay for Ho's...

Mon, 11/09/2009 - 14:05 | 124827 carbonmutant
carbonmutant's picture

Anything too big to fail is a sovereign state.

Mon, 11/09/2009 - 14:44 | 124879 Anonymous
Anonymous's picture

Why is JC invariably referred to as "famous" or "legendary"? If he's so famous or legendary, then he needs no introduction as such.

Mon, 11/09/2009 - 19:37 | 125265 Anonymous
Anonymous's picture

He gave this same lecture at Yale recently, which I attended. I didn't think he said anything earth shattering. All his suggestions have been suggested elsewhere. I think he's more interested in making sure academics continue to support short-selling as a fundamental part of efficient markets.

Mon, 11/09/2009 - 19:44 | 125270 Zippyin Annapolis
Zippyin Annapolis's picture

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

Tue, 11/10/2009 - 06:26 | 125666 aus_punter
aus_punter's picture

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

Do NOT follow this link or you will be banned from the site!