Quick! The Government must structure a bailout! Too big to fail! The sky will fall. Artic ice will retreat unless we act now!
Denninger is the best.
“We have fixed exactly nothing in the world of finance over the last two years. We have in fact squandered the opportunity to put in place global economic and financial system reforms - enforced mark-to-market, enforced capital requirements (one dollar of capital for each dollar of unsecured lending), enforced leverage limits and ring-fencing governments while allowing those who do dumb things to eat the consequences. We did none of the above and instead played “liquidity games”, patting ourselves on the back for having avoided “Armageddon.””
I would think that the easier lesson would be not to loan money to Arab countries that have no oil, but nevertheless want to build indoor ski runs and islands shaped like a map of the world.