The kind of people who gravitate toward becoming regulators are good at crunching numbers but lack the knack for "pulling the trigger." That's why more regulations and regulators is the wrong way for taxpayers to be forced to go.
Bureaucrats inherently seek to avoid making waves. Initiative and inspired thinking are vices to the bureaucrat, and fidelity to "the system" is the highest virtue. Orthodoxy is sacred, heterodoxy is heresy.
Because no system created by Man is ever perfect, fidelity to it eventually must lead to failure. Orthodoxy must eventually lose, and heterodoxy must eventually rise.
Regulation can therefore never succeed. It is guaranteed to fail.
Every day when I read the headlines in the Wall Street Journal I find myself thinking, ‘yep, Peter Nayland Kust is right again!’ What still mystifies me is how so many MBA Finance grads could mess up so many common-sense banking fundamentals. So, my next question: do you think this latest bank failure will placate everyone into thinking the banking crisis is over, or do you think it will spark the nervous herd into a stampede to get their deposits out of Dodge?
The bank runs are generally independent of each other, although driven by a common set of factors.
There are small banks that are likely to tumble in the near future. Western Alliance and Pac West are two leading candidates for the next domino. When or if they actually do fail is still a tale yet to be told.
It's not impossible, but keep in mind the deposit outflows have been going for right at a year. It's only the last stage when the structural disequilibrium reaches critical mass when the panic stage sets in.
The panic stage is what gets the media attention but it's the build-up to that stage where the damage is done.
The kind of people who gravitate toward becoming regulators are good at crunching numbers but lack the knack for "pulling the trigger." That's why more regulations and regulators is the wrong way for taxpayers to be forced to go.
Bureaucrats inherently seek to avoid making waves. Initiative and inspired thinking are vices to the bureaucrat, and fidelity to "the system" is the highest virtue. Orthodoxy is sacred, heterodoxy is heresy.
Because no system created by Man is ever perfect, fidelity to it eventually must lead to failure. Orthodoxy must eventually lose, and heterodoxy must eventually rise.
Regulation can therefore never succeed. It is guaranteed to fail.
Every day when I read the headlines in the Wall Street Journal I find myself thinking, ‘yep, Peter Nayland Kust is right again!’ What still mystifies me is how so many MBA Finance grads could mess up so many common-sense banking fundamentals. So, my next question: do you think this latest bank failure will placate everyone into thinking the banking crisis is over, or do you think it will spark the nervous herd into a stampede to get their deposits out of Dodge?
The bank runs are generally independent of each other, although driven by a common set of factors.
There are small banks that are likely to tumble in the near future. Western Alliance and Pac West are two leading candidates for the next domino. When or if they actually do fail is still a tale yet to be told.
It's not impossible, but keep in mind the deposit outflows have been going for right at a year. It's only the last stage when the structural disequilibrium reaches critical mass when the panic stage sets in.
The panic stage is what gets the media attention but it's the build-up to that stage where the damage is done.