A Quote by Warren Buffett
That goes back to 1932, although it was really implemented in '33 under Jesse Jones, and it invested in mostly banks initially and preferred stock and that sort of thing. So there are two things needed in the system, the one that's needed overwhelmingly is liquidity. I mean, when people are trying to [unintelligible], there has to be somebody there to buy.
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I don't think it would be crazy to have a model or an entity model on the Reconstruction Finance Corp. That goes back to 1932, although it was really implemented in '33 under Jesse Jones, and it invested in mostly banks initially and preferred stock and that sort of thing.
When I got the ball in the reserves, within two touches I would turn and look to attack my opponent, whereas in the first team, I was trying for the safer option. I needed to go back to basics. I needed to get defenders on the back foot again.
I didn't so much think I needed to address the shooting need. What we needed was somebody who could come in and play the two-three (shooting guard-small forward) spot. If he could've been a pure shooter, great. But if not, we still needed somebody to give us minutes there. I like the guys we've got.
From my point of view, the American financial system - including banks and investment banks - is far safer because of capital and liquidity requirements. Despite all the turbulence so far this year, I don't think anyone's questioning our system. And that, obviously, is a good thing.
When a corporation goes into the marketplace to buy back its own stock, it means management thinks the stock is undervalued. This is a smart time to buy.
Just because you buy a stock and it goes up does not mean you are right. Just because you buy a stock and it goes down does not mean you are wrong.
I think the notion...that liquidity is this - of tradable common stock - is a great contributor to capitalism - I think that is mostly twaddle... The liquidity gives us these crazy booms, which have many problems as well as virtues.
Things for me really started to click right after my third year in the league. I sort of figured out that there were a few things that I needed to do if I wanted to get better - I needed to gain some more weight and add some strength.
The Central Bank should have a permanent window for discounting high quality securities where banks could go and discount these. It gives peace of mind to the banks. In the absence of this facility, what banks tend to do is to keep a liquidity cushion for emergency requirements. This is a very expensive way of managing liquidity.
I was at that point where my children needed more than going around the planet in the back of a bus. They needed stability, they needed to build their own lives and relationships, and I needed to put my life on hold. I made my choice - I chose my children.
I was still very invested in the team, very invested in how we were doing. I realized I needed to take a step back and start focusing on myself, my head and my eye, try to get my health back.
I think you'll have plenty of scrutiny as how the money's invested. I mean, just like the RFC. When the RFC operated, people knew which institutions they were buying preferred stock in. And it worked very well.
One way to ease liquidity for banks is that the government can buy all highly rated securities held by the banks. Every single bank in the U.A.E. has some sovereign debts in their portfolios. I am not asking them to buy any junk bonds, rather the high quality U.A.E. government debt.
When we started, I was delivering meals to people in Atlanta. We were a direct-care organization. And it was - people needed meals, they needed transport, they needed medication, they needed buddy systems. They had a death sentence. There was AZT, and that was just prolonging the agony, basically. Now people, of course, if they are on antiretrovirals, they face a lifetime of health, basically. I mean, it doesn't - it's I would say in the 99 percent certainty bracket that if you are on that medication, you will have a healthy life.
The role of liquidity in systemic events provides yet another reason why, in the future, a more system wide or macroprudential approach to regulation is needed.
Can you know you can have institutions that put curbs on that in various ways, and actually what the banks, you know, they have various capital ratios and that sort of thing, but the banks got around them, I mean, they set up sieves and that sort of thing just to get more leverage. People love leverage when it's working. I mean, it's so easy to borrow money from a guy at X and put it out at X.
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