Have we learned nothing?

Whether the Volcker Rule becomes law one day or banks get broken up or bankers are forced to accept 5 figure paydays or long/short hedge funds are deemed legally riskier, by some systemic risk regulating czar, than long only mutual funds who get mauled in bear markets, we can all be confident that we’ve learned nothing about what was the genesis of the credit bubble and what can be a foundation for responsible behavior in the future. The genesis being artificially cheap money whose sole intention is to encourage borrowing, artificial demand in housing spurred on by the financing of FNM and FRE and the inability to allow failure as a result of bad decisions that can be controlled by bankruptcy law. But I digress. Global stocks continue their China led correction, earnings season relative to expectations is mediocre and Greece remains a problem as their 10 yr bond yield is rising to the highest since 2000.

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