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

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