If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Saturday, 1 May 2010

FSA is coming back to their senses

The UK regulator, FSA, appears to be coming back to their senses. Today an actuarial professional who works for a retail bank, has written to the author of this blog:

"I attended a presentation on liquidity from a senior figure in my banks Treasury department - the FSA are proposing a ratio which would in effect mean LTD < 100%."

On one side it is good news, but on the other it is worrying: even if FSA do something right they do not really understand what they are doing. But it is a progress from much-celebrated "Turner Review".

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