Archive for March, 2010

Wet and windy weather …

March 21, 2010

… with girls around the coast.

Why are girls gathering around the coast? I don’t understand.

Oh, I see. Gales. An accent. Meh.

Tory leader David Cameron details plan for bank tax

March 20, 2010

» Tory leader David Cameron details plan for bank tax

Opportunist. Still, some kind of levy seems only fair, although the assumption that only banks are too big to fail continues to baffle me (AIG? General Motors?)

I’m assuming the word “details” here is some kind of joke. As is the reminder that David Cameron is leader of the conservative party.

What really confuses me though is this:

Treasury sources say Mr Darling favours a tax over an untouchable insurance premium because he fears that banks could feel they were insured against the consequences of their actions and take even greater risks.

It’s analagous to saying “we oppose people getting car insurance because it just increases the risk that they’ll drive carelessly”. Although I suppose we all had so much fun in the last big bank bankruptcy that another one would be so much fun. Somehow, a chancellor favouring a tax always gives me a certain amount of cynicism.

High rolling risk and low rolling reality

March 8, 2010

Two important news stories, both of which were largely ignored:

» Hedge funds do not pose systemic risk, concludes FSA

» FSA plays down prop trading impact

Two well known villains of the finance world – hedge funds and prop traders – seem a lot less, well, villainous after the FSA did some investigation of them.