We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

Samizdata quote of the day

If Antarctic ice continues to grow, the trickle of refugees may become a stampede, as Antarctic climate scientists, some of whom have been there for years, are forced to leave their traditional habitats.

– Breitbart’s Eric Worrall laments the impact of climate change.

How regulation created a banking mono-culture

I agree with Mr Quotulatiousness that this, from a posting at the Coyote Blog from July 7th of last year, deserves to be made much of:

One of the factors in the financial crisis of 2007-2009 that is mentioned too infrequently is the role of banking capital sufficiency standards and exactly how they were written. Folks have said that capital requirements were somehow deregulated or reduced. But in fact the intention had been to tighten them with the Basle II standards and US equivalents. The problem was not some notional deregulation, but in exactly how the regulation was written.

In effect, capital sufficiency standards declared that mortgage-backed securities and government bonds were “risk-free” in the sense that they were counted 100% of their book value in assessing capital sufficiency. Most other sorts of financial instruments and assets had to be discounted in making these calculations. This created a land rush by banks for mortgage-backed securities, since they tended to have better returns than government bonds and still counted as 100% safe.

Without the regulation, one might imagine banks to have a risk-reward tradeoff in a portfolio of more and less risky assets. But the capital standards created a new decision rule: find the highest returning assets that could still count for 100%. They also helped create what in biology we might call a mono-culture. One might expect banks to have varied investment choices and favorites, such that a problem in one class of asset would affect some but not all banks. Regulations helped create a mono-culture where all banks had essentially the same portfolio stuffed with the same one or two types of assets. When just one class of asset sank, the whole industry went into the tank.

Well, we found out that mortgage-backed securities were not in fact risk-free, and many banks and other financial institutions found they had a huge hole blown in their capital.

I remember having all this explained to me at the time, although I do not now recall who by. I do recall the word “Basel” coming up a lot.

My title above is in the past tense, but I presume problems like this have since got worse rather than better. What will be the dates of the next financial crisis, I wonder?

Samizdata quote of the day

Must admit, it’s really rather satisfying to see the Left and their rich luvvie acolytes squabbling and squealing over the outcome of the election like a bunch of failed vampires arguing over a used tampon. I think the word “Schadenfreude” is the one I’m looking for.

– Samizdata commenter Tanuki

Samizdata quote of the day

Jesus said unto him, If thou wilt be perfect, go and sell that thou hast and give to the poor. But when the young man heard that saying, he went away sorrowful, for he had great possessions. So he went on Twitter instead and called Michael Gove a ‘vile reptilian evil tory scumbag’, and linked to a cartoon of Iain Duncan Smith stealing a paralysed woman’s wheelchair. And lo, he felt better and went for a £3.50 caramel macchiato with some mates from the BBC.

– Libby Purves, who lives behind the Time paywall, has some fun with Matthew chapter 19. Mick Hartley quotes from the Purves piece at his blog, in a piece entitled Virtue signalling. You can’t Read The Whole Thing at Mick Hartley’s, but you can read a bit more of it.

Samizdata quote of the day

How can the Tories have won? We did so many tweets and photoshops. I just don’t get it. #GE2015

– Favourite-blogger-of-mine 6k spots a particularly choice tweet, by David Schneider.

Another Samizdata quote of the day


“On its world, the people are people. The leaders are lizards. The people hate the lizards and the lizards rule the people.”

“Odd,” said Arthur, “I thought you said it was a democracy.”

“I did,” said Ford. “It is.”

“So,” said Arthur, hoping he wasn’t sounding ridiculously obtuse, “why don’t the people get rid of the lizards?”

“It honestly doesn’t occur to them,” said Ford. “They’ve all got the vote, so they all pretty much assume that the government they’ve voted in more or less approximates to the government they want.”

“You mean they actually vote for the lizards?”

“Oh yes,” said Ford with a shrug, “of course.”

“But,” said Arthur, going for the big one again, “why?”

“Because if they didn’t vote for a lizard,” said Ford, “the wrong lizard might get in.”

– Douglas Adams. So Long, and Thanks for All the Fish, not for the first time either.

Samizdata quote of the day

Whether The People be led by The Lord,
Or lured by the loudest throat:
If it be quicker to die by the sword
Or cheaper to die by vote—
These are things we have dealt with once,
(And they will not rise from their grave)
For Holy People, however it runs,
Endeth in wholly Slave.

– Rudyard Kipling, MacDonough’s Song, not for the first time.

Samizdata quote of the day

“The last thing we need is to wake up in 50 years and find that a bunch of #gamergate nobheads are running Mars.”

That is exactly what is going to happen, because us gamergate nobheads (actually the technical term is neckbeards) are smarter and more creative than you, whereas you intolerant SJW thugs create nothing but faux outrage, grievance and a sense of undeserved entitlement to things created by better people than you.

– Guardian commenter ‘evilhippo’, who often gets his pithy remarks deleted on the Guardian. Dunno know he is but clearly a wise and witty seeker of truth, no doubt a devilishly handsome fellow to boot 😉

Samizdata quote of the day

Crony capitalism is alive and well. Big business and big government go hand in hand.

Carly Fiorina

Samizdata quote of the day

Our message today is very simple: we will never allow barbarism, never allow Islam, to rob us of our freedom of speech.

Geert Wilders

Samizdata quote of the day

If it be feared that this discourse may unhappily advantage others in such unlawful courses; it is considerable that it does not only teach how to deceive, but consequently also how to discover delusions. And then besides, the chief experiments are of such nature, that they cannot be frequently practised, without just cause of suspicion, when as it is in the magistrates power to prevent them. However, it will not follow, that every thing must be suprest which may be abused. There is nothing hath more occasioned troubles and contention, than the art of writing, which is the reason why the inventor of it is fabled to have sown serpents teeth. And yet it was but a barbarous act of Thamus, the Egyptian king, therefore to forbid the learning of letters: we may as well cut out our tongues, because that member is a world of wickedness. If all these useful inventions that are liable to abuse, should therefore be concealed, there is not any art or science which might be lawfully profest.

– Bishop John Wilkins, Mercury, or the Secret and Swift Messenger: Shewing How a Man May with Privacy and Speed Communicate His Thoughts to a Friend at a Distance, published 1641, the first work on cryptography in the English language.

Samizdata quote of the day

I wish you all the luck in the world Baltimore. And I truly wish you had the courage to change. If you ever do, send up a flare. Until then, there is nothing anyone can do for you. You are victims of your own choices, and no one can make choices for you but you.

– John Nolte, from ‘Baltimore is a Democrat problem, not America’s problem