tag:blogger.com,1999:blog-17515505.post5779159352547395482..comments2023-04-03T11:14:16.633+01:00Comments on Maverecon - Willem Buiter's Blog: A missed opportunity for the FedWillem H. Buiterhttp://www.blogger.com/profile/02706673292089745848noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-17515505.post-64495681563058615092007-08-18T15:24:00.000+01:002007-08-18T15:24:00.000+01:00If I may say so, I think you are missing something...If I may say so, I think you are missing something here Willem. The moral hazard is not just with the agent fund managers who bought toxic waste, but with their end-investors too. Maybe terms that are sufficiently penal for "those paying the price to remember it during the next credit boom" are not harsh enough. The terms need to be harsh enough so that no-one else will be tempted to go there in the next credit boom, and that the end-investors will pay more attention to what their agents are doing. If that is done, then it may not be necessary to regulate for greater transparency as you were calling for on the World Service today, because the investors will simply insist on it. The British did not shoot Admiral Cochrane because they wanted to stop HIM retreating again, but "pour encourager les autres"!Anonymousnoreply@blogger.com