Yet another discussion about banks regarding the Huffington Post call to remove your money from the major American banks. There is in fact no reason why your money should be managed by a multinational public corporation (and many reasons why it shouldn’t). It is partly why my banking is handled by the Rabobank, a cooperative banking institution.
Keeping money safe is not rocket science and can be done perfectly on a local (city/province) scale with proper safeguards and insurance. Matt Mullenweg also wrote a post about how he would improve the state of banking using common (web) sense.
For the discussion I was looking for Nassim Nicholas Taleb’s recommendations for not getting out of this crisis, but making sure it never happens again. I had a hard time finding them with Google, but they’re in a PDF on Taleb’s site Fooled by Randomness.
I don’t think we can read these principles often enough (at least until they are implemented by our legislators), that is why I have taken the liberty to copy out the headlines here from the PDF1:
- What is fragile should break early while it is still small.
- No socialisation of losses and privatisation of gains.
- People who were driving a school bus blindfolded (and crashed it) should never be given a new bus.
- Do not let someone making an “incentive” bonus manage a nuclear plant – or your financial risks.
- Counter-balance complexity with simplicity.
- Do not give children sticks of dynamite, even if they come with a warning.
- Only Ponzi schemes should depend on confidence. Governments should never need to “restore confidence.”
- Do not give an addict more drugs if he has withdrawal pains.
- Citizens should not depend on financial assets or fallible “expert” advice for their retirement.
- Make an omelette with the broken eggs.
These are only the headlines. Be sure to read the full recommendations in the PDF.
- PDF is bad. ↩