Submitted by Benjamin Katcher on April 7, 2008 - 4:48pm.
Thanks for these helpful comments about the Soros talk. I'd be curious to know whether Soros advocates policies that would limit the extent to which investment banks - and other financial institutions that are "too entangled to fail" - may leverage themselves. Taxpayers should only be lenders of last resort to those institutions over which they possess broad regulatory powers.
Also, you briefly mentioned the concept of 'decoupling' at the end of the post. Could you expand on this? Do you think that China is 'decoupled'? It seems to me that this is a matter of degree. So perhaps the better question is: To what extent do you think that China is decoupled?
Questions about Leveraging and Decoupling
Thanks for these helpful comments about the Soros talk. I'd be curious to know whether Soros advocates policies that would limit the extent to which investment banks - and other financial institutions that are "too entangled to fail" - may leverage themselves. Taxpayers should only be lenders of last resort to those institutions over which they possess broad regulatory powers.
Also, you briefly mentioned the concept of 'decoupling' at the end of the post. Could you expand on this? Do you think that China is 'decoupled'? It seems to me that this is a matter of degree. So perhaps the better question is: To what extent do you think that China is decoupled?