"Des waerelds doen en doolen, is maar een mallemoolen,"

"Des waerelds doen en doolen, is maar een mallemoolen," engraving from Het Groote Tafereel der Dwaasheid, 1720.

"The actions and designs of the world go round as if in a mill." South Sea bubble financial crisis.

Saturday, July 14, 2012

The costs of complexity II




















The Economist underlines what I think is going to be a growing debate about financial regulation:  The push for simple rules:
But it did not do what a regulator charged with supervising exceedingly complicated institutions should: focus on the simplest rules possible where there is the least room for interpretation. Banks need to obey high capital standards, backed by robust leverage ratios that are not easily gamed.

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