{"id":355,"date":"2008-09-25T22:33:44","date_gmt":"2008-09-25T22:33:44","guid":{"rendered":"http:\/\/gaisan.com\/wordp\/?p=355"},"modified":"2008-09-25T22:33:44","modified_gmt":"2008-09-25T22:33:44","slug":"on-the-brink-of-madness","status":"publish","type":"post","link":"https:\/\/gaisan.com\/blogs\/?p=355","title":{"rendered":"on the brink of madness"},"content":{"rendered":"<p>As we&#8217;re on the brink of the biggest nationalisation in world history with the US preparing is $700Bn bailout of many of its major financial institutions in return for equity and tighter regulation it&#8217;s probably a good time to consider whether it needed to be this bad.<br \/>\nHere are a few suggestions that could have capped the <em>&#8220;irrational exuberance&#8221;<\/em><\/p>\n<ul>\n<li>Maintain a full record of stock and commodity market short positions as is maintained for longs<\/li>\n<li>Either ban the practice of naked shorting or impose reasonable and proportionate fines on the fauilure to execute the &#8220;puts&#8221; in the event the stock rises. Without fines in reasonable proportion to the &#8220;naked&#8221; position then the risk to hedge funds is simply not great enough and mayhem will reign<\/li>\n<li>The ECB should raise and enforce requirements for bad debt provisions by banks based on their balance sheet.<\/li>\n<li>No unsecured bailouts for banks. When a bank is bailed out due to what is impolitely described as reckless lending the government providing the rescue package should take a reasonable stake. It seems highly unfair to the rest of the economy that some financial services companies should be immune to the consequences of their actions.<\/li>\n<li>Require banks to purchase government bonds to support the deposit guarantees (now 100k in Ireland)<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>As we&#8217;re on the brink of the biggest nationalisation in world history with the US preparing is $700Bn bailout of many of its major financial institutions in return for equity and tighter regulation it&#8217;s probably a good time to consider whether it needed to be this bad. Here are a few suggestions that could have [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"_links":{"self":[{"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=\/wp\/v2\/posts\/355"}],"collection":[{"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=355"}],"version-history":[{"count":0,"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=\/wp\/v2\/posts\/355\/revisions"}],"wp:attachment":[{"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaisan.com\/blogs\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}