DID IT AGAIN

I just don't know why this happens but half of yesterday's blog didn't print and I can't get back in to correct errors or complete it. Sorry, Carter. I had a few other things to point out such as the French really have good grub which makes up for some of their bad ideas but "a new world order" when it comes to the limited function (well, not so limited) of insuring that a global liquidity facility is in place is not one of them. I also apologized to the world (how grand of me) for making these ideas sound like a Pax Americana or another Uncle Sam power grab by explaining that we are a curious people: we are easiest to deal with when we think we control the agenda and therefore it would be best if we started the ball rolling. Were ever it might stop is anyone's guess but we'll take credit for it no matter whose ideas win out in the end. Just a fact of life.

By the by, I loved your wide angle view of history but it does central bankers no favors. Everything start with a glut of money, sloshing around trying to find a home and ends with the buy side's insatiable demand for product and yield ultimately resulting in a collapse of some sort. It's going to happen again. Can you say QU II? We're on our way.

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Now for our old friend, Anonymous. I can't disagree with anything you have said except that bit about being unable to find anyone who has the solution; HERE I AM!

Again, to be serious, I'm not sure there is one given human nature and the forces aligned against an "orderly market" which you have so properly pointed out. We are not going to have standardized regulation, unleast not in our lifetimes (unless you are very young which you wisdom belies) nor can we turn the clock back to pre-1999 as Tall Paul wishes. Mr Volker keeps forgetting that the U.S. is no longer the only game in town; regulation here means more competition there and if you don't believe it look at the effect SOX has had on the New york Stock Exchange. If I were a regulator the thought of encouraging activities to leave my domain because of over-regulation would scare me more that a lack of the same. Yet, that's what we appear to be trying to accomplish.

Therefore, what you have properly pointed out only increases, in my mind at least, that as there is no magic bullet available to control this monster we have created, we had better work on the next best thing; agree that we are goin to be facing continued crises and figure out the best ways to contain them when they occur. Our friend Carter can compare some of my views with the Scottish bankers of the past but the fact remains that in addition to praying on their knees and occasionally upon their neighbors, they ran a pretty good set of banks. Best practices. Try to emulate them but at the same time realize that we live in different and as the Chinese curse states it, "interesting times."

I hope nothing too important happens in the next week as we are heading down to Disney World (no, I didn't win the Super Bowl) to spend some time with the son #1 and the grandkids. Needless to say, after the worst winter in history, the fly-over zone is about to experience a warm-up so half the thrill is gone. The grandkids are wonderful, however. We are back on the 25th. but if I can find a computer I'll try to pen some pithy stuff. Later.