Seth Klarman outlines the lessons that investors were quick to forget only two years following one of the greatest financial meltdowns in modern history.
"Almost no one will accept responsibility for his or her role in precipitating a crisis: not leveraged speculators, not willfully blind leaders of financial institutions, and certainly not regulators, government officials, ratings agencies or politicians."
I did my thesis on the Subprime Mortgage Crisis ... and jep, people forget ... key is that the banking system has higher capital ratios, if we go down again massively, more tools at the disposals of regulators & government etc. But also, some aspects are still missing or kind of fuzzy.
Net, progress has been made, nothing is perfect :)
We disagree with #18 — when a government official says a problem has been “contained,” pay no attention — you should pay full attention! Their words are often the reverse of reality.
"Almost no one will accept responsibility for his or her role in precipitating a crisis: not leveraged speculators, not willfully blind leaders of financial institutions, and certainly not regulators, government officials, ratings agencies or politicians."
Almost.
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#10
From the list of 20
Great take and recall! Thank you!
I did my thesis on the Subprime Mortgage Crisis ... and jep, people forget ... key is that the banking system has higher capital ratios, if we go down again massively, more tools at the disposals of regulators & government etc. But also, some aspects are still missing or kind of fuzzy.
Net, progress has been made, nothing is perfect :)
Appreciate the kind words and the comment!
shit was forgotten because the stupid assholes who caused it werent punished
thanks for this. reflected these vis a vis bear market lessons i had in 2021 - 2022 and now... it works so well ..
We disagree with #18 — when a government official says a problem has been “contained,” pay no attention — you should pay full attention! Their words are often the reverse of reality.
In fairness, I think you are both getting at the same point.
He says "pay no attention" as if to say they are usually wrong.
You say "pay attention" as if to say, do the opposite of what they say.
Agreed