A Quote by Seth Klarman

Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and are almost never stress-tested for stormy weather. Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered. Ironically, the government is eager to restore the securitization markets back to their pre-collapse stature.

Seth Klarman

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Almost Almost Perfect Area Assets Back Collapse Collapsed Created Dangerous Days Description Eager Financial Fits Fully Government Highly Innovation Ironically Markets Never New Perfectly Products Restore Stature Stormy Stormy Weather Stress Sunny Sunny Day Tell Tested Though Weather Will

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Seth Klarman
American - Author
Born: May 21, 1957

The overwhelming majority of new mortgages are issued with government backing in a highly concentrated securitization market. That leaves us with both potential taxpayer liability and systemic risk.

Jerome Powell

The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.

Ben Bernanke

Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.

Myron Scholes

The government - the ultimate short-term-oriented player - cannot withstand much pain in the economy or the financial markets. Bailouts and rescues are likely to occur, though not with sufficient predictability for investors to comfortably take advantage. The government will take enormous risks in such interventions, especially if the expenses can be conveniently deferred to the future. Some of the price-tag is in the form of back- stops and guarantees, whose cost is almost impossible to determine.

Seth Klarman

To restore confidence in our markets and our financial institutions so they can fuel continued growth and prosperity, we must address the underlying problem. The federal government must implement a program to remove these illiquid assets that are weighing down our financial institutions and threatening our economy.

Henry Paulson

You can't look back at the worst financial crisis of our lifetimes that started in 2008 and not have some important lessons about the critical nature of oversights in financial markets and institutions.

Austan Goolsbee

Ultimately savings have to go somewhere and I think they will find their home in financial markets and within financial markets, a large part in equity.

Rakesh Jhunjhunwala

The financial collapse of 2008 got its start with predatory mortgages, that weren’t sold by community banks and credit unions, they were sold by fly by night mortgage brokers who had almost zero federal oversight and then the big banks looked over, saw the profit potential and they wanted it bad. So they jumped in and sold millions of these terrible mortgages while the bank regulators just looked the other way.

Elizabeth Warren

The heart of the 2008 financial crisis was a coterie of reckless financial executives, working for too-big-to-fail financial companies, who were handsomely compensated for taking risks that almost ruined the economy when they failed.

Gary Weiss

If you don't talk about families, then it's easy to disembody subprime mortgages and asset securitization and unemployment rates without remembering that every one of those numbers is a million families.

Elizabeth Warren

The Federal Reserve has always recognized the importance of allowing markets to work, and government oversight of financial firms will never be fully effective without the aid of strong market discipline.

Ben Bernanke

The process of globalization has now interconnected almost everything ranging from financial markets to transport networks to communication systems in a huge system that no one really understands.

John L. Casti

Reverse innovation is an innovation that is first adopted in developing markets and flows uphill to mature markets. This concept directs forward-looking companies to look beyond industrialized nations to draw new ideas, products, and processes from emerging economies.

Dinesh Paliwal

Do not trust financial market risk models. Despite the predilection of some analysts to model the financial markets using sophisticated mathematics, the markets are governed by behavioral science, not physical science.

Seth Klarman

No. It is not acceptable that the 6 largest financial institutions in this country have assets of almost 10 trillion dollars, and issue half of the mortgages and two-thirds of the credit cards. That is too much wealth and power in the hands of a few. If Teddy Roosevelt were alive today he'd tell us to 'break them up.' And he'd be right. These huge banks must be broken up.

Bernie Sanders

Mark Hammond is working in this area, with Windows Scripting Host. It is definitely an area where Python fits almost perfectly. That's quite independent from Java, actually.

Guido van Rossum

A Quote by Seth Klarman

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