A Quote by Warren Buffett
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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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.
Banks don't want certain asset classes, and that's created opportunities for private equity, hedge funds, Silicon Valley. In this case I think he was referring to some of the European banks shedding assets, and the big buyers are probably not going to be big American banks. Someone like Blackstone may have a very good chance to buy those assets, leverage them, borrow up a little bit, and do something good there.
I would take lots of falls and you know, get shot three or four times and this sort of thing, so all that sort of stuff. And there are tussles with various characters. I like that kind of thing.
The Bankers' New Clothes makes a simple, powerful argument: that banks need to raise more capital. It is entirely persuasive that the extent of their leverage makes the financial system fragile, and it clearly and patiently demolishes all the counter-arguments made by the banks and their lobbyists.
In a world of businessmen and financial intermediaries who aggressively seek profit, innovators will always outpace regulators; the authorities cannot prevent changes in the structure of portfolios from occurring. What they can do is keep the asset-equity ratio of banks within bounds by setting equity-absorption ratios for various types of assets. If the authorities constrain banks and are aware of the activities of fringe banks and other financial institutions, they are in a better position to attenuate the disruptive expansionary tendencies of our economy.
The financial crisis was linked to the fact that banks had excessive leverage and too many risky assets. The solution is not to try to dictate to banks what they can do or not do, but to require them to strengthen their capital to absorb potential losses and hold less risky assets.
Institutions develop because people put a lot of trust in them, they meet real needs, they represent important aspirations, whether it's monasteries, media, or banks, people begin by trusting these institutions, and gradually the suspicion develops that actually they're working for themselves, not for the community.
I've seen more people fail because of liquor and leverage -- leverage being borrowed money. You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing.
I think part of the reason I'm attracted to Foster is because he's such a mess. I mean, the people I have loved in my life have never been easy to love. I'm not used to normal. I'm used to disaster. I don't know, as messed up as he is, he's also sort of exciting, sort of a challenge. I'm accustomed to working for love.
I've never done a kissing scene with someone even when you're friends. I mean that sort of even makes it weirder. If you don't know them or like them at all, you can kind of put some weird like ... I don't know. It's the strangest thing. Look at the person next to you and imagine making out with them now, while I film it.
Economically, ISIS is making money every day on the black market with their oil fields. But they are also putting money in banks. We know where those banks are. We should go after the banks and the facilitators using them.
And I guess the thing that I really sort of rely on in me is that I love racing and I love competing and so I know that you know when the time comes and the pressure's on and I have to swim well, I'm sort of able to pull it out and sort of get the best out of myself.
You look at the savings health insurance, there's so many great ways you can do that. You'll get great plans at much less money, at much less money. I mean, these people are being just killed. And you know the 25% was put out by Washington 'cause the real number could be three times that amount. I mean, it's catastrophic what's going on.
I like the iPhone, the iPad, all the various members of that family. But I like all the various technologies that are becoming available to make the world more accessible to people who are blind and with low vision. I also like that more and more people are committing themselves to close captioning so the deaf can really know what's going on. I like the position of making buildings more accessible by having ramps and various ways people who are paraplegic to be able to get around.
I actually think that the economy has got some positives. It's got the market. It's got consumer confidence and it's got banks throwing - I mean central bankers throwing money at it around the world.
Among the largest banks, the capital ratios remain good and I don’t expect any serious problems . . . . among the large, internationally active banks that make up a very substantial part of our banking system.
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